INDIANAPOLIS — Indiana residents have been seeing some relief at the pump with falling gas prices. That relief will be increased in September when one of the gas taxes drops.

On Wednesday, the Indiana Department of Revenue recently published the gasoline use tax calculation for September. The calculation shows the rate starting September 1 will be 24 cents per gallon, down from 29.4 cents per gallon in June.

The department calculates the gasoline use tax by taking the average retail price per gallon of gasoline in the prior month and multiplying it by the state retail tax of .07 cents. The state said the average retail cost was $3.4215.

September’s gasoline use tax will be more than 5 cents less than August’s tax. This is the largest drop in gasoline use tax since 2014. The next largest drop happened in February 2015, when the gasoline use tax dropped 4.3 cents. It will be at the same level Indiana was at in June 2022.

In addition to the gasoline tax, people buying gasoline pay additional state and federal taxes. As of July, people pay 33 cents per gallon in gas excise tax, which goes towards infrastructure projects, and a federal tax of about 18 cents per gallon.

If the average retail cost of gasoline remains at $3.4215 in September, people would end up paying around $3.93 at the pump. As of August 17, AAA reports the average cost of gas in Indiana is about $3.945.

AAA reports the national average for a gallon of regular gas fell 10 cents in the past week due to stable oil prices and fewer drivers than usual fueling up.

“Falling pump prices may eventually lead to more drivers hitting the road again,” said Andrew Gross, AAA spokesperson. “But that hasn’t happened yet. Instead, many drivers are waiting for prices to fall further before reverting to their typical driving habits.”

Although gasoline demand has risen and supplies have tightened, AAA says easing oil prices have helped lower pump prices. If oil prices edge lower, drivers will likely see falling pump prices.