Council soaks up fuel price hikes

By Nathan Johnston
RISES in fuel prices could reduce the road maintenance jobs in the City of Greater Dandenong.
The city’s director of engineering services Tim Tamlin said the council could be forced to make some sacrifices to cope with rising fuel costs for its fleet of cars and equipment.
But he said the council had coped with bigger problems in the past.
“Fuel is an issue and it does cost us, but it’s not going to have the same impact as the storm in February, where we were left with a $100,000 damage bill,” Mr Tamlin said.
“We’re $11,000 over budget for the first three months of this financial year, so we’re looking at $44,000 for the year in a fuel budget of $500,000.
“We can sustain it. It will just mean that we have to change some of the work we do.
“It will probably mean we cut back on our maintenance program. We’ll put projects on hold that will affect the least amount of people.”
Mr Tamlin said the petrol bill for council’s fleet of cars was not the major concern.
“It’s more the street sweepers, the maintenance vehicles and the mowers that end up costing the council,” he said.
He said the council had not increased its budget for the fuel increase.
“There was no extra in the budget. The budget was finalised before the prices went up to the current levels,” Mr Tamlin said.
“But in previous years we had budgeted for more than what we spent. We knew it had to go up eventually.
“When we go over in one area, you have to cut spending in another.”