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 Diesel bill blow-out ‘not all high fuel cost’ 

Diesel bill blow-out ‘not all high fuel cost’

22/07/2008 8:22:00 AM
Maitland City Council's annual diesel bill blew out by $166,000 between 2006-07 and 2007-08.

But much of the cost is attributed to fuel used for June 2007 long weekend flood repairs and not all of it to record oil prices.

A report to tonight's meeting by city works and services acting group manager Richard Minter says diesel consumption had steadily increased from 506,523 litres a year in 2004-05, to 590,883 litres in 2007-08.

But the cost went from $471,170 to $769,943.

The percentage increase caused by fuel price rises was 16.91 per cent for 2005-06, 5.84 per cent for 2006-07 and 15.52 per cent for 2007-08.

Unleaded fuel costs went from $189,085 a year in 2004-05 to $286,005 in 2007-08.

"Diesel fuel use has increased in each of the past three financial years with a significant increase (12 per cent) recorded in 2007-08," Mr Minter said.

"The council has incurred an increased cost of $166,000 for diesel fuel in 2007-08.

"This increase has been made up of $71,000 from increased usage, essentially due to and funded by flood repairs, and $95,000 from increased diesel costs that have been absorbed through better and more efficient equipment and techniques."

Mr Minter attributed the increase to June 2007 flood event repairs in addition to the regular works, which had also increased by up to 12 per cent; significant weekend work in the second half of the financial year to catch up on works delayed due to the flood; and additional recreation maintenance areas such as Walka Water Works.

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