President Donald Trump and Nebraska Governor Jim Pillen announced temporary measures to ease rising diesel costs, with both directives set to expire in December. Sixth-generation Nebraska farmer John Hansen described the impact as a “bunt single,” noting the relief is “somewhat helpful but small in scale.” Hansen, who leads the Nebraska Farmers Union, said the measures do not address underlying issues such as rising base fuel costs, tariffs, and trade policies.
Trump’s executive order temporarily allows the use of untaxed red-dyed diesel for “any reason” beyond its typical restricted use in farmland and construction equipment. The directive is set to expire in December. However, the Nebraska Trucking Association, which represents roughly 900 companies, has cautioned members against using the untaxed fuel, citing ambiguity in who can benefit and how the directive would work.
“We’re being very clear,” said Kent Grisham, president and CEO of the Nebraska Trucking Association. “Do not put dyed diesel in your tanks – at least not yet.” Grisham praised the president’s attempt to find temporary relief, noting that “every supply chain is diesel-powered.” He added that rising diesel prices are likely to affect consumers and businesses across the state.
During a midterms rally in Grand Island, Nebraska, Trump remarked that the directive should help secure the re-election of fellow Republicans Pillen and U.S. Sen. Pete Ricketts. Details of the directive, including how the federal diesel fuel tax will be deferred, are still being finalized by the secretary of the Treasury.
Earlier, Pillen announced his own order to refund Nebraska’s state diesel tax – 31.8 cents per gallon – on clear/undyed diesel fuel used during a similar 90-day period for agricultural products transported from field to market or storage. The directive also allowed tax-free red-dyed diesel to be used for ag purposes on state public roads without penalty through December.
