Excise hike to add $20,000 to council costs

A RISE in the fuel excise will see Shoalhaven City Council’s petrol costs increase by almost $20,000 per year.

At present council uses approximately 155,000 litres of fuel per month for business or private use, costing around $210,000.

That equates to $2.52 million per year.

Council purchases all its fuel from Caltex through a NSW government procurement contract, paying approximately $1.40 a litre (excluding GST) for ULP and diesel.

A rise in excise would see that price rise by a cent per litre to $1.41, adding an extra $1550 per month or $18,600 a year to the council’s fuel bill.

Approximately 75 per cent of the fuel council uses is diesel and in the light vehicle fleet 90 per cent of the vehicles are four cylinder.

Council has 151 leaseback vehicles, where the driver pays a fee to use the vehicle privately as part of their employment package, with all fuel accessed via the Caltex fuel card system.

Prior to 2010 council had its own fuel storage in operation but disbanded the operation due to increasing licensing requirement.

Shoalhaven Mayor Joanna Gash said any extra costs would have to come out of council’s general revenue.

“It would be up to the financial department to help us find those funds,” she said.

“It is the same as when state or federal government grants become available, we often have to find funds to match them or add extra to them.”

She said council would save money on electricity with the carbon tax “so it would all work out in the long run”.


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