Omaha businesses call for broader diesel tax relief as fuel prices top $6

OMAHA, Neb. — With diesel prices topping $6 a gallon in Nebraska, some Omaha-area business owners are calling on the state to expand temporary diesel tax relief beyond agriculture.

For George Davis, president and CEO of Ollie the Trolley, the impact is visible every time he fills up.

At one Omaha gas station, Davis paid $5.899 per gallon for diesel, less than the statewide average of $6.09 reported by AAA on Friday.

As the pump climbed past $120, Davis said businesses like his need help now.

“We need relief, period. Today, not six months from now. We need it now,” Davis said.

Davis wants Nebraska to suspend its diesel tax more broadly. The state tax on most gasoline and diesel products is about 32 cents per gallon.

He isn’t alone.

Arshad Nazir, owner of NP Mart, said he appreciates Gov. Jim Pillen’s move to provide temporary diesel tax relief for farmers, but said other customers are still struggling with high fuel costs.

“I appreciate the Nebraska governor’s efforts suspending the diesel tax for the Nebraska farmers,” Nazir said. “It’s putting a lot of good impact on Nebraska farmers, but we see our regular fuel customers are still hurting.”

Pillen signed an executive order providing temporary diesel fuel tax relief for vehicles transporting agricultural products or livestock in September.

Saunders County farmer Doug Bartek said Thursday that he supported the move.

“At the end of the day, I think it was a good thing,” Bartek said.

For now, however, the relief does not extend to all vehicles that use diesel, and Pillen has not indicated that he plans to expand the tax break.

That leaves business owners like Davis paying significantly more for fuel than they were accustomed to.

Davis said eliminating roughly 30 cents per gallon in taxes would not erase the burden of higher diesel prices, but it would make a meaningful difference.

“It would help us tremendously,” Davis said.

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