Council proposes $40 extra to cover diesel price rise
Council is proposing to increase the standard domestic waste charge by $53, to $652 for 2026/27, an 8.8% increase. Of this increase, $40 is directly attributable to higher diesel fuel costs.
At council’s April meeting, chief financial officer Caroline Foley said the waste business could cost council over $4 million in extra costs over the next year.
Fuel cost increases due to the war in Iran resulted in the Federal Government halving the fuel excise on petrol and diesel for three months, from 1 April to 30 June, reducing the cost of fuel by 26.3 cents per litre.
Council said it was ‘actively monitoring’ fuel supply and pricing, but was not experiencing any disruptions to waste services.
“Diesel fuel is a significant cost driver for waste management, as the service relies heavily on fuel intensive vehicle fleets for kerbside collection and the transport and handling of waste across the supply chain,” Northern Beaches Mayor Sue Heins told PL.
“These cost pressures are largely outside council’s control and reflect broader market and supply conditions impacting the transport sector.”
Councils draft Delivery Program 2026-2030, Operational Plan and Budget 2026/27 and Long-term Financial Plan 2026-2036, discussed as its meeting on 21 April, proposed changes to the domestic waste management service charges. The plans are now out for public consultation.
Waste service includes the collection, transport, processing and disposal of household waste.
In addition to the maximum $250 pensioner rebate available under the Local Government Act 1993, the draft plan also proposes an additional rebate for eligible pensioners for the 2026/27 financial year – $80 for waste management charges and $150 for rates for eligible pensioners.
Council is progressively transitioning its fleet to low and zero-emission vehicles. As part of this approach, vehicles are being replaced with electric or lower-emission alternatives at the end of their service life, supporting a sustainable and financially responsible transition.
For heavy vehicles, including waste collection trucks, council is currently developing a strategy to support the transition to low and zero-emission options. This includes monitoring market developments, assessing emerging technologies, and considering operational and infrastructure requirements.
For parks and reserves maintenance, council uses a mix of petrol and electric (battery powered) tools where suitable. Electric tools are increasingly considered during procurement and replacement, with Parks Operations prioritising electric options where feasible.
Council said in the draft plan that ‘heightened caution’ was needed in the coming months. “Council is continuing to assess the financial impact of this situation, which may result in unfavourable adjustments as part of future budget reviews,” the draft plan stated. “At this stage, council has made contingency provisions through working capital, and we will continue to closely monitor the movements in prices.”
The draft plan will be exhibited for a minimum of 28 days and the outcome of the public exhibition will be reported to council on 16 June for consideration and adoption of the documents by 30 June.
