Statewide average updated daily • Source: AAA
Indiana gas prices typically run near the national average, occasionally dipping slightly below it. The state has a moderate tax structure, good access to Midwest refinery supply, and benefits from its position along several major interstate corridors that generate competitive retail fuel markets. Indiana is also notable for having one of the most unusual gas tax structures in the country — a variable rate tied to the average retail price of fuel that causes Indiana’s effective tax to rise and fall with market conditions.
Indiana’s gas tax structure is unique — the state charges a base excise tax plus a variable use tax calculated as a percentage of the average retail price. When gas prices are high Indiana’s effective tax rate rises automatically, and when prices fall the rate decreases. This means Indiana drivers pay higher taxes precisely when fuel is most expensive — a pattern that amplifies price spikes compared to flat-tax states. In a typical market the combined rate runs around 50 to 55 cents per gallon when all components are counted.
Indiana benefits from proximity to refineries in the Whiting, Indiana area near Chicago — one of the largest inland refineries in the United States — as well as good pipeline connections throughout the Midwest. The I-65, I-70, and I-80 corridors through Indiana are heavily traveled and have competitive station markets.
Northwest Indiana near the Illinois border is a particularly interesting market — Chicago-area drivers regularly cross into Indiana to take advantage of lower taxes compared to Cook County and the City of Chicago, creating a cross-border fuel market that keeps Northwest Indiana prices highly competitive.
Did you know? Indiana is home to the BP Whiting Refinery — one of the largest inland oil refineries in the United States, capable of processing over 400,000 barrels of crude oil per day — making Northwest Indiana one of the most important refining locations in the entire Midwest. Indiana’s variable gas tax means drivers get hit twice during price spikes: once by the higher market price and again by the automatic tax increase. Indiana sits at the crossroads of I-65, I-70, and I-80/90, making it one of the most truck-dependent states for freight movement and creating highly competitive travel center fuel pricing.
Compare today’s average in Indiana with nearby states to understand regional price differences.
Learn more about what drives gas prices across the United States.
Crude oil prices are the biggest driver of what you pay at the pump. For U.S. and global crude oil production data updated from EIA figures, see Oil Production Live.