Regional councils and their workers are bearing the brunt of rising fuel costs, as new figures highlight the growing strain on local government services and staff across New South Wales.
Regional Cities NSW has warned the State’s upcoming Budget must address what it describes as a widening inequity between metropolitan and regional communities, with the fuel crisis compounding existing pressures.
Chair of Regional Cities NSW and Lismore Mayor Steve Krieg said the impact of rising fuel costs extends far beyond the bowser.
“Every part of regional life is touched by fuel,” he said.
“When freight slows, supermarket prices rise. When fuel costs spike, road maintenance blows out. When construction becomes more expensive, housing supply stalls even further. And when councils can’t afford to run water treatment plants or cart emergency supplies, communities are put at risk.”
Regional councils are particularly exposed, with many services — including road maintenance, waste collection, water treatment and emergency response — heavily reliant on fuel-intensive operations.
At the same time, council workers themselves are feeling the pressure. A new survey of local government staff found one in two are struggling to get to work due to fuel costs, with four in 10 spending at least an extra $50 a week and two in 10 paying more than $100 extra.
Seven in 10 workers said current allowances no longer cover their fuel expenses, while one in 10 are considering leaving the sector altogether due to rising costs.
The United Services Union has now taken action, applying to the NSW Industrial Relations Commission for changes to the local government award.
The union is seeking increased fuel subsidies, flexible work arrangements and protections for workers affected by the ongoing fuel crisis.
USU Head of Legal Daniel Papps said regional workers were particularly affected due to long travel distances.
“This is important for our regional members who sometimes drive 100 kilometres back and forth to work each day,” he said.
The union is also pushing for expanded work-from-home arrangements for eligible staff, arguing it would help reduce pressure on fuel supplies while supporting workers facing rising costs.
“We want staff who can work from home to be allowed to keep petrol and diesel in the bowsers for other council workers like tradies, truck drivers and groundskeepers who need it,” Mr Papps said.
Regional Cities NSW said the issue highlights broader structural challenges facing regional areas, where long distances and limited public transport make communities more vulnerable to fuel price shocks.
“Regional NSW produces a third of the State’s goods and drives a significant share of economic activity, but the systems that support that growth are under real pressure,” Cr Krieg said.
The organisation’s pre-budget submission calls for targeted investment in housing, water infrastructure and freight networks, warning that rising fuel costs are driving up construction prices, worsening housing shortages and increasing the cost of essential services.
It also points to a $1 billion backlog in water infrastructure and growing pressure on transport networks, with freight volumes expected to increase significantly in coming years.
Cr Krieg said the upcoming State Budget would be a critical moment for regional communities.
“This is a moment that matters,” he said.
“The Government can choose to back regional NSW or leave communities to carry these pressures on their own.
“The time to act is now.”
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