INDIANA -- Indiana still has the lowest average gas price nationwide, according to GasBuddy.

That's thanks to Governor Mike Braun's extension of the gas tax holiday, which began in April, through early August.

However, this means local governments are missing out on revenue for road projects, so Tuesday, the Indiana Board of Finance voted unanimously to approve a reimbursement for the foregone revenue from April and May.

ABC57's Annie Kate spoke with Patrick De Haan, head of petroleum analysis for GasBuddy.

"There are new escalations; the price of oil has jumped, and gas prices jumped yesterday across much of Indiana," he said.

Once again, traded attacks with Iran are on the rise, as are gas prices here at home.

"Gas prices yesterday jumped across Indiana, including South Bend," De Haan said. "The average price: $3.52. Although most stations jumped to $3.59."

He said prices increased about 19 cents since last week, and a barrel of oil is up $14 in the last two weeks.

"But it's not just the U.S. and Iran now that's a major factor in what we pay at the pump," De Haan said, "it's also increasingly because of Ukrainian attacks on Russian oil refineries."

Russia is a major refiner and exporter of diesel but banned all diesel exports amid the new attacks in its ongoing invasion of Ukraine.

"The problem is, there's only a finite number of refineries globally, and when a handful of them are knocked offline by attacks, it unfortunately makes these product prices (gasoline, diesel and jet fuel) more expensive for everyone globally," De Haan said.

And yet, Indiana's gas prices remain the lowest nationwide, despite another upward trend.

"Indiana's gas tax suspension of both taxes is probably the most significant, longest tax suspension that I've ever seen," he said.

De Haan said he's doubtful the extension will be renewed beyond August, so he worries that when the suspension expires, prices will immediately spike by 50 to 75 cents.

"My concern is that in a little over two weeks, if these gas tax suspensions aren't extended, you're going to see whiplash at the pump," De Haan said. "It will likely mean gas prices fly back up over the $4 mark virtually overnight."

The good news for local municipalities is the state's reimbursement, unanimously approved Wednesday by the Indiana Board of Finance.

More than $120 million will be transferred from the State Highway Fund to cover the local funds that would have been collected from the gas taxes in April and May. The foregone funds from June, July, and August will still need to be addressed.

This means local governments will still receive those dollars, and the state takes the hit. ABC57's Annie Kate also spoke with State Budget Director Chad Ranney about what this means for Indiana's balances.

"So effectively, right now it is INDOT that's eating the cost of the gas tax holiday," he said. "We are anticipating they will be able to absorb the cost of the fuel tax holidays while maintaining the same construction program on the state's highways."

Ranney said the state's finances are in good shape, with both the general and reserve funds expected to be at a surplus at the close of this year, which allows the governor to demand that local municipalities be made whole.