Indiana's fuel tax cut sends Illinois drivers rushing across state lines
Indiana has temporarily cut its fuel taxes, giving drivers a break at the pump. The move slashes nearly 60 cents per gallon from the price, with some stations now selling petrol for as little as £3.70 ($4.59). Drivers from neighbouring Illinois are already crossing the border to take advantage of the lower costs. Governor Eric Holcomb suspended Indiana’s gasoline excise tax of 36 cents per gallon for May. He also extended the suspension of the 23-cent usage tax, bringing total savings to almost 60 cents per gallon. The change is expected to reduce the cost of a typical fill-up by around 12.4%.
The tax break, however, comes at a price for the state. Officials estimate the suspension will cost Indiana at least $100 million in lost revenue. Despite this, local residents like Bill Cliff of Gary have welcomed the influx of Illinois drivers seeking cheaper fuel. In nearby Chicago, petrol prices remain high, with some stations charging close to £4.05 ($5) per gallon. Nate Carrasco, a driver from the city, recently travelled to Indiana to fill up his car. Lavonta Stewart, another Illinois motorist, noted that more people are making the trip to save money. Illinois Governor JB Pritzker has raised concerns about similar tax cuts in his own state. He warned that suspending the gas tax could harm funding for roads, bridges, and other essential infrastructure. Earlier in March, an Illinois lawmaker proposed a temporary halt to the state’s fuel tax, which could save drivers between 60 and 70 cents per gallon.
Indiana’s tax suspension has already led to noticeable drops in fuel prices across the state. Drivers from Illinois are crossing the border to benefit from the savings, though the policy will reduce state revenue by millions. The debate over balancing affordability and infrastructure funding continues in both states.
