Gas price tax hike hits at same time prices soar for holiday weekend

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INDIANAPOLIS — Gas prices are expected to hit the highest we’ve seen in six years this holiday weekend.

At the same time, the new gas price tax hike went into effect Tuesday.

Indiana used to use a gas sales tax of 19 cents per gallon, but now Hoosiers pay gas tax based on prices the previous month, which calculates to 22 cents in July.

“Aha, well thanks for that reminder!” said Sam Harper on Tuesday afternoon.

“I’m kind of retired and on a fixed income and I look at it pretty carefully,” said Harper. “When you’re driving around, you see slight differences. I usually go for the cheapest one. I walk a lot or ride my bike and that helps.”

On Tuesday, the cheapest price was typically around $3.40, according to Gas Buddy.

The state average was $3.50 as of Tuesday afternoon. While that’s about 13 cents cheaper than a week ago and forty cents cheaper than a month ago, prices are expected to be the highest we’ve seen since 2008 this weekend.

The U.S. average was $3.68 on Tuesday, and all of our surrounding states reported a higher average than Indiana prices.

AAA predicts 41 million Americans will travel 50 miles or more from Wednesday through Sunday.

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