The current fuel crisis should now be treated as both a financial risk and a service continuity risk. Councils cannot assume that higher petrol and diesel prices will simply be absorbed within existing operating budgets. Nor should they assume that fuel will always be available in the quantities required. The possibility of further price increases and localised supply interruptions means councils should be actively planning for a range of scenarios.
Model Financial Exposure
Councils should understand their total organisational consumption of petrol and diesel, not simply the fuel used by their own fleet and plant. The assessment should also consider waste contracts, civil works, road construction and maintenance, freight, facilities management and other contracts where higher fuel costs may ultimately be passed back to council. Do not let fuel price escalation become a surprise for the budget.
Financial modelling should test a range of fuel-price scenarios and quantify the impact on the operating budget, capital program and Long-Term Financial Plan. This should include identifying the point at which higher fuel costs can no longer reasonably be absorbed without reducing expenditure elsewhere.
Prepare for Supply Interruption
Councils should identify which services are genuinely essential and which vehicles, plant and contractors are required to maintain them. Fuel allocation priorities should be established before shortages occur, not during them.
Waste collection, emergency response, critical infrastructure, water and wastewater operations and other essential services are likely to receive priority. Councils should also determine which activities could be reduced, deferred or temporarily suspended if fuel availability deteriorates.
Model Service Reductions Now
That might include reducing mowing and roadside slashing frequencies, consolidating inspections and site visits, deferring non-critical maintenance, reducing staff travel, changing works programs, postponing lower-priority capital works or temporarily reducing other fuel-intensive activities.
The objective is not necessarily to implement these measures immediately. It is to ensure the organisation understands its options, the savings available and the consequences for the community before difficult decisions are required.
At the same time, councils should review fuel contracts, bulk storage arrangements, supplier contingency plans and controls over fuel use. Where fuel is stored at council facilities, arrangements should ensure that available supplies can be protected and prioritised for essential operations.
Reduction of Council Exposure to Liquid Fossil Fuels
Every suitable passenger vehicle, utility, van, truck or item of plant transitioned to electricity reduces future exposure to petrol and diesel price volatility. Integrating fleet electrification with depot charging, rooftop solar and battery storage provides an opportunity to progressively produce, store and manage more of the energy required to deliver council services.
Councils cannot control the price of oil, geopolitical conflict or international fuel supply. They can control how prepared they are, which services they protect and how dependent their organisation remains on imported fossil fuels.
The time to make those decisions is before the next major price spike or supply interruption, not after it occurs.
About Us
Since 2014, Ravim RBC has specialised in helping councils of all sizes across Australia improve service delivery through strategic service planning and service reviews.
Recognising that many council services rely on fleet, plant and equipment, we have developed extensive expertise in fleet management, fleet optimisation and the transition to low-emission fleets. We also partner with Uniqco to deliver independent fleet audits, maturity assessments and reviews that improve operational performance, financial sustainability and asset utilisation.
Our Principal, John Ravlic, brings more than 40 years of executive leadership and consulting experience in local government. Having worked with councils across Australia, John combines strategic insight with practical experience to help organisations deliver efficient, sustainable and community-focused services.
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