INDIANAPOLIS — Indiana drivers have faced a sharp increase at the fuel pump after Gov. Mike Braun extended a state gas tax holiday to help residents manage rising costs.

The average price for a gallon of regular gas in Indiana hit $3.92 Thursday, according to AAA. That is a 17-cent increase from Wednesday.

“We are in an affordability crisis. And this affordability crisis affects more and more and more of the economy,” said Andreas Hauskrecht, a clinical professor of business economics at the Indiana University Kelley School of Business. “And you will feel it more and more and you will feel it in groceries and you’ll feel it in the supermarket.”

Braun originally issued the gas tax holiday in April to alleviate prices. He has now extended the holiday through Oct. 5. Diesel prices, which averaged $6.42 a gallon Thursday in Indiana, are not included in the tax relief.

“Diesel is normally used by businesses. So, businesses versus households. That was a reason it wasn’t included,” Braun said.

Hauskrecht said the spike in diesel prices hits farmers particularly hard during the harvest.

“A tractor runs on diesel,” Hauskrecht said. “Farmers are really hit by those high diesel prices because they have to bring the crops in now. They have to bring it in otherwise they go bad.”

Because most goods are transported by truck, the economist noted that rising fuel costs will eventually reach almost every consumer product.

“Think about trucking. The trucks are using diesel. We truck most of the goods. And so it affects basically every final good,” Hauskrecht said.

He added that there is little the average household can do to avoid the impact.

“For a normal household, there is nothing you can avoid. I mean, you can try saving, but Americans have very low saving rate. And the low and middle class American have an extremely low saving rate,” Hauskrecht said.

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