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Local News Top Stories X A gas pump is pictured at the Franklin Kroger gas station on Aug. 31, 2024. Daily Journal File Photo Hoosiers will pay a few cents more in taxes at gasoline pumps next month. The state’s 7% sales tax applied to gasoline purchases will be 17.2 cents a gallon starting April 1, a 2.1 cent-jump from March and a 1.3 cent-jump from April 2025. The last time the sales tax was above 17 cents a gallon was in October, when it was 18 cents a gallon. Officials calculated the new rate using the statewide average pre-tax price for gasoline, which increased to $2.3614 a gallon during the Feb. 16 to March 15 tracking period, according to a notice issued Thursday by the Indiana Department of Revenue announcing the rate. Revenue from Indiana’s gasoline sales tax is earmarked for state and local road construction projects. The sales tax rate is separate from Indiana’s 36-cent-a-gallon gasoline tax, which is not impacted by the rising price of fuel. Per Indiana law, this tax goes up by 1 cent every July 1. The calculation of the index factor used for the tax doesn’t allow for it to increase by more than 1 cent year-to-year. Rising fuel prices also do not affect the federal gas tax of 18.4 cents a gallon. The federal tax has been unchanged since 1993. Hoosiers will pay 71.6 cents in taxes combined, including 53.2 cents in state taxes, for every gallon of gasoline they purchase in April. Indiana’s gas sales tax has generally increased toward the summer months, in line with higher gas prices, since 2015. Last year, there was an average monthly increase of 0.38 cents from April to September, with an average sales tax of 17.3 cents during the six-month period. From April to September 2024, there was an average increase of 0.3 cents a month, with an average sales tax of 20.1 cents during the six-month period. Next month’s 2.1-cent increase, however, comes amid an ongoing spike in gasoline and oil prices as a result of the conflict in Iran. In the U.S., drivers are now facing the highest prices they’ve seen at the pump in two and a half years. According to AAA, the national average for a gallon of regular gasoline jumped to over $3.84 on Wednesday, up from $2.98 consumers were paying before the U.S. and Israel attacked Iran on Feb. 28. The last time gas prices were as high as they are now was in September 2023, the Associated Press reported. Pain at the pump has been one of the most immediate economic impacts of the conflict because the price of crude oil — the main ingredient in gasoline — has soared and swung rapidly in recent weeks, due to supply chain disruptions and cuts from major producers across the Middle East. Brent crude, the international standard, was trading at over $108 a barrel on Wednesday, up from roughly $70 just weeks ago. And benchmark U.S. crude is now going for almost $98 a barrel. Many eyes are on the White House. Before the war, President Donald Trump once bragged about keeping gas prices low. But he’s since pivoted to try to paint high oil prices as a positive outcome for the U.S. Last week, Trump said that because the U.S. is now the largest crude producer in the world, “when oil prices go up, we make a lot of money.” Companies that supply oil benefit from higher prices. But steeper costs always pinch consumers’ wallets — and today’s prices arrive as many households continue to face wider cost-of-living strains. It could also push up already stubborn inflation, at least in the short run, and potentially hammer the economy more significantly if rising costs drag on. Experts say that could apply more pressure on the Trump administration, particularly as affordability continues to stay at the top of voters’ minds, the Associated Press reported. The U.S. is now a net exporter of oil — and other parts of the world that rely more heavily on fuel imports from the Middle East, notably Asia, have seen starker energy shocks amid the war. But that doesn’t mean America is immune to price spikes. Oil is a globally traded commodity. And most of what the U.S. produces is light, sweet crude — but refineries on the East and West coasts are primarily designed to process heavier, sour product. So the country also needs imports. The road ahead is uncertain, and prices could worsen if the war drags on. Iran has effectively halted nearly all tanker movement in the key Strait of Hormuz, where roughly one-fifth of the world’s oil once sailed through on a typical day. That’s led to cuts from some major producers in the region, because their crude has nowhere to go. Trump has demanded that other countries send warships to reopen the waterway, but has yet to garner sign-ons, as many ask for more clarity about America’s next steps for the war. Meanwhile, Iran, Israel and the U.S. have all struck oil and gas facilities. The Associated Press contributed to this report. Featured Local Savings