Manufacturing News
October 6, 2026
October 6, 2026 · Statewide · Story 5 of 5
Indiana Holds Cheapest Gas in Nation as Diesel and Crude Stay Elevated
AAA data shows Indiana had the nation's cheapest gasoline on October 2 at $3.79 per gallon, 13.8% below the $4.41 national average, and GasBuddy's survey of 3,271 Indiana stations showed prices fell further to $3.73 by October 5 even as Brent crude held above $100 a barrel on renewed US-Iran tensions. But Indiana's gasoline price is still up 10% from $3.45 a month earlier, and the state's diesel average of $6.89 per gallon (the real cost driver for in-state logistics) remains far above the gas price and untouched by any relief.
- Impact
- Indiana's cheap-gas title isn't structural, it's policy-manufactured: Governor Mike Braun has run six consecutive monthly suspensions of the state's roughly 58.9-cent combined gas tax, which he called his 'final' extension in July, meaning any further relief now requires legislative action. Indiana's underlying gas tax ranks 3rd-highest in the nation at 63.1 cents/gallon once the holiday ends, so the pump price could jump back up by roughly 59 cents overnight, while the diesel spread, which the gas tax holiday doesn't touch, keeps freight costs elevated and is pushing some small carriers toward exiting marginal lanes.
- Watch
- Whether the Indiana legislature takes up gas tax legislation in its next session, and whether Governor Braun issues another emergency extension after October.
- For the huddle
Why is Indiana gas cheap but diesel expensive right now?
Indiana's $3.79 gas price depends on Governor Braun's suspended state gas tax, which he has called his final extension, while diesel at $6.89 gets no relief from that holiday and is priced by different market factors entirely.
From the brief, October 6, 2026
- Dalton Foundry's Warsaw, Indiana Reopening Clears the Council, Customer Decision Still Open
- Nucor Vulcraft Adds a Steel Grating Line in St. Joe, DeKalb County
- Indiana's Cheapest Gas in the Country Sits on a Tax Holiday That Could End
- CAMINUS to Manufacture Amprius Defense Battery Cells in Indianapolis
- Indiana Holds Cheapest Gas in Nation as Diesel and Crude Stay Elevated
Related
- Astemo's Muncie, Indiana Plant Expansion Meets Honda's New Ownership Stake
- Braun Fast-Tracks $116.5M in Indiana Utility Rate Relief, ITAMCO Presses Plymouth on Annexation Terms, and Kratos Expands at Crane
- AES Indiana's BlackRock Buyout Rate Case, Samsung SDI's New Carlisle Takeover, and the Patrick-LCI Bid War: What Indiana Manufacturers Need to Track This Week
Manufacturers Energy Grant Program
Free for Indiana manufacturers
Manufacturers from qualifying Indiana counties receive free, ongoing energy auditing and cost control that reduces their energy bills and keeps them low, month after month. Every line item checked and validated, every opportunity found comes with a step-by-step guide to capture it.
EDCs: sponsor this program and it carries your organization's name For economic developers →