Indianapolis gas prices near $5 as Indiana tax relief expires and Iran tensions mount

Key facts

• Indiana gas prices averaged $4.42/gallon on April 30, up from $2.80 on March 2.
• Indianapolis average: $4.486 on April 30, up from $2.796 on March 2.
• Some stations in Mishawaka and South Bend charge $4.99 per gallon.
• Gov. Mike Braun's 30-day suspension of Indiana's gas usage tax expires May 8.
• President Trump signaled a blockade of Iran could last months, straining the Strait of Hormuz.
• National average gas prices rose by $0.27 in one week, AAA reported.
• Gas prices are the highest in four years, since late July 2022, per AAA.

A gallon of regular unleaded in Indianapolis now approaches $5

The price for a gallon of unleaded fuel in Indianapolis reached nearly $5 at some locations on Thursday, April 30, according to data from AAA and GasBuddy. The average price across the city stood at $4.486, up sharply from $2.796 just two months earlier. At stations in Mishawaka and South Bend, drivers reported paying $4.99 per gallon at Exxon and Speedway locations. Relief at the pump is not expected soon. A temporary 30-day suspension of Indiana's gas usage tax, ordered by Governor Mike Braun earlier this month, is set to expire on May 8. Meanwhile, President Donald Trump has indicated that a blockade of Iran could persist for months, further disrupting oil shipments through the Strait of Hormuz, a critical chokepoint for global crude supplies.

Indiana's average gas price surged past $4 in late March

Data from the American Automobile Association shows that Indiana's average gas price for regular fuel hit $4.42 per gallon on April 30, compared to $2.80 on March 2. The $4 threshold was breached less than a month later, on March 24. The national average rose by 27 cents in a single week, according to an unnamed AAA spokesperson who noted that prices are the highest they have been in four years, since late July 2022. Across the state, cities recorded steep increases. Bloomington averaged $4.534 on April 30, up from $2.944 on March 2. Evansville, the lowest among tracked cities, averaged $4.004, up from $2.668. Fort Wayne, Muncie, and South Bend all saw averages above $4.45, with South Bend reaching $4.524.

Drivers report prices ranging from $3.59 to $4.99 on social media

Residents took to Facebook to share what they were paying at the pump, with prices ranging from $3.59 to $4.99 per gallon. Many locations hovered around the $4.79 mark, according to posts compiled by WSBT. The cheapest fuel found in South Bend's far northwest side was $4.09 per gallon. The disparity reflects localized competition and supply dynamics. Oil prices themselves remain elevated, with the Associated Press reporting a 5.8% increase on Wednesday alone. The combination of geopolitical uncertainty and expiring state relief measures is squeezing household budgets across the Hoosier State.

Governor Braun's tax suspension expires next week

Governor Mike Braun's executive order temporarily suspending Indiana's gas usage tax for 30 days will lapse on May 8. The tax, typically collected at the pump, was meant to provide immediate relief as prices began climbing. With its expiration, drivers will face an additional cost just as the summer driving season approaches. The move was part of a broader state response to rising fuel costs, but the underlying causes — including the Iran blockade — are beyond state control. President Trump's signal that the blockade could last months suggests that supply pressures on the Strait of Hormuz will persist, keeping crude prices elevated.

Geopolitical tensions in the Strait of Hormuz drive global oil prices

The Strait of Hormuz, a narrow waterway through which about 20% of the world's oil passes, has become a flashpoint in the conflict with Iran. President Trump's blockade strategy aims to cut off Iranian oil exports, but it also risks disrupting the flow of crude from other Gulf producers. The resulting supply uncertainty has pushed oil prices higher, feeding through to retail gasoline costs. Analysts warn that the situation could worsen if the blockade is extended or if retaliatory actions occur. For Indiana, which relies on refined products from Gulf Coast refineries, any disruption in crude supply translates directly to higher prices at the pump.

No immediate relief in sight as summer demand looms

With the Memorial Day holiday approaching, gasoline demand typically rises, putting further upward pressure on prices. The combination of expiring state tax relief, sustained geopolitical risk, and seasonal demand suggests that prices may remain elevated for weeks or months. AAA's data indicates that the current price level is the highest since the summer of 2022, when national averages briefly topped $5. For now, Indiana drivers are left to navigate a market where a fill-up costs nearly $20 more than it did in early March. The state's temporary tax suspension provided a brief cushion, but its expiration next week will remove that buffer just as the broader forces driving prices higher show no signs of abating.

The bottom line

• Indiana gas prices averaged $4.42/gallon on April 30, up 58% from March 2.
• Some stations in Mishawaka and South Bend charge $4.99 per gallon.
• Governor Braun's 30-day gas tax suspension expires May 8, removing a temporary relief.
• President Trump's Iran blockade threatens to disrupt oil flows through the Strait of Hormuz for months.
• National average gas prices rose 27 cents in one week, the highest in four years.
• prices ranging from $3.59 to $4.99, with many stations at $4.79.