Ollie The Trolley's CEO feels the pinch as diesel prices hit record high

OMAHA, Neb. — Rising diesel prices are squeezing Ollie The Trolley, with its CEO warning that customers could soon see higher prices if costs continue to climb.

George Davis, CEO and president of Ollie The Trolley, said diesel prices have already forced him to absorb significant added costs — but that may not be sustainable much longer.

"We did not pass that fuel price on to our customers that we do business with. We took the hit. But we can't keep on taking the hit," Davis said.

According to AAA, the average cost for a gallon of diesel in Nebraska has reached a record high of $5.68. Nationally, the average is $5.98 per gallon, also a record. Diesel prices are up 59% since the war between the U.S. and Iran started in February.

Davis said he has seen prices at some stations reach as high as $5.95 per gallon, and that fuel costs are roughly $2 per gallon higher than they were before the price surge.

"If it gets $6 or more a gallon, oh yeah, we're gonna have to do something about that," Davis said.

When asked whether that could mean passing costs along to customers, Davis said it would — though reluctantly.

"We don't want to, want to do that," Davis said.

University of Nebraska Omaha Assistant Professor of Economics Jane Liu, Ph.D. said businesses have fewer options than individual consumers when it comes to responding to fuel price increases.

"You can drive, you know, to less places, fewer places ... but for businesses, they are not that flexible," Liu said.

Liu pointed to the ongoing conflict in the Middle East and persistent global demand as key drivers behind the record diesel prices.

"Conflicts in the Middle East remain a very big factor, and also you think about the demand for the diesel. It's inflexible. It's a global and it's strong," Liu said.

With a booked schedule ahead, Davis said more trips to the pump are unavoidable for his business.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.