East Gippsland Shire Council is taking a proactive approach to its response to the ongoing fuel supply and pricing challenges due to the Middle East conflict.Since the impacts of the conflict first started to be felt across Australia, council has been working across its services and contracts to plan for business continuity and manage cost escalations.
Chief executive officer Fiona Weigall said impacts on the community were significant.
“Our region is heavily reliant on fuel/oil products due to our industries, geographic size, and access to public transport. There is no certainty about how long the current disruptions will last, and our community – families, businesses, farmers, truckies, sporting clubs and community groups – are all feeling the impacts,” Ms Weigall said.
“I want to reassure East Gippslanders that essential services delivered by council will continue, and that we have been diligent in securing fuel and finding efficiencies to limit the impact on service delivery.
“Recognising that most of our contractors are local businesses and the fuel increases are above what they could have reasonably been able to foresee, we have started proactive discussions with them.
“Our approach to managing these changes is now being taken up by the Municipal Association of Victoria and applied to the local government sector more broadly.
“We are also having ongoing conversations with peak bodies and politicians to explain the situation for us as a local government, and our community.”
Some service levels may change
If elevated fuel prices and supply challenges persist, council will need to change how some services and projects are delivered.
“We are working within our existing budget to manage the impact this financial year through well-considered service delivery alternatives and reduced fuel consumption,” Ms Weigall said.
“For context, the fuel budget used directly by council for our operations has the potential to double next financial year. We have already spent our fuel budget for this year, with a quarter of the year to go. As a result of these cost increases, we are finding savings to ensure our essential services continue to be delivered this financial year and developing the budget for 2026/27 that includes consideration of the uncertainty around fuel prices.
“All of the decisions we make are based on the principles of supporting our communities, businesses and people in the short, medium and longer term, limiting disruption, and maintaining essential services.”
