The Eyre Peninsula Local Government Association (EPLGA) says the region’s councils are facing mounting pressure as surging global fuel prices reduce their capacity to deliver services and maintain local infrastructure.
EPLGA President and Kimba District Council Mayor, Dean Johnson said the escalating cost of fuel has been a major challenge as the region’s councils set their 2026-27 budgets.
“Our councils use hundreds of thousands of litres of fuel each year to build and maintain roads, collect and transport waste, look after parks and gardens, and provide a range of other vital community services,” said President Johnson.
“Unfortunately, high fuel prices are increasing our operational costs and stretching council budgets that were already tight.
“We know our communities are doing it hard and we are making every effort to keep rates increases for next year as low as possible, but we’re having to make some tough decisions.”
President Johnson said the impact extends beyond diesel vehicles and machinery, with the current crisis also driving up the cost of bitumen.
“In my council we’ve had to put our road resealing program on hold for 2026-27 as bitumen prices are up around 50 per cent,” he said.
“We’re planning on resheeting our unsealed roads over the coming twelve months, but eventually we will need to address the state of our sealed roads.
“As a level of government we maintain around 75% of Australia’s road network, so from a road safety and national productivity perspective it’s crucial that we are sustainably funded.
“Councils are also seeing significant cost increases in PVC and Poly plastic pipes used for water supply, sewerage and drainage, which are vital for new infrastructure developments.”
He said the fuel crisis and growing budgetary pressures on councils reinforced the need for a more sustainable funding model.
“With the Federal Budget due to be handed down next week, we’re continuing to call for untied funding to local government to be restored to at least one percent of Commonwealth taxation revenue.”
“It’s also crucial that the Commonwealth extends and increases South Australia’s supplementary road funding, which recognises that as a State we otherwise receive an unfair share of road grants.
“We would also love to see a return of the Government’s highly successful Local Roads and Community Infrastructure Program, which provided all councils with funding to address local priorities.
“We’ve been elected by our communities to make tough decisions, and that’s what we’re doing. But without meaningful and sustained investment from the Commonwealth, councils will continue to face impossible trade-offs.”
