A harsh winter could bring with it significant cost pressures for Argyll and Bute Council – including having to pay much more to refuel its maintenance vehicles.
A senior official at the local authority said the anticipated rise in fuel costs was partly brought about by a government-enforced ban on the use of red diesel.
The Hydrocarbon Oil Duties Act 1979 was amended from April 1, meaning that red diesel can no longer be used as a commercial heating fuel.
It can only be used in certain sectors, with those where it is no longer allowed now having to use more expensive white diesel instead.
Council leader Robin Currie asked about potential rising costs after reading of concerns from another local authority.
And Jim Smith, Argyll and Bute’s head of roads and amenity services, admitted there may be cost pressures in the event of a severe winter.
The council’s winter maintenance programme was approved at a meeting of its environment, development and infrastructure committee today.
Cllr Currie asked: “I saw this morning that Aberdeen was predicting a 25% increase in the price of salt, and a 30% rise in the cost of fuel for a winter programme.
“Is that in your thoughts, and if so, what effect would it have on this programme?”
Mr Smith replied: “Certainly we expect a price increase in salt. That is something we have reported.
“For this year, we are no longer able to use red diesel. We were previously able to do that, and it was significantly cheaper than white diesel.
“Excavators, rollers, street lighting hoists and winter maintenance trucks ran on [red diesel], but that has now been scrapped and we are having to use white diesel.
“There will be a cost pressure there, and pressure from salt prices increasing.
“But the winter maintenance programme is something where you cannot give accurate prices on what costs will be until you are through the winter. We don’t know how many times it will be needed.
“Potentially, there could be a cost pressure if we have a severe winter. We will be paying more fuel for everything we operate, and that is compounded by the red diesel issue.
“But it is our intention to deliver the policy we have set out, and if there are any significant cost pressures because of big winter events, that is something we will have to deal with through the budgeting process.
Kirsty Flanagan, the council’s executive director, added: “The latest budget outlook, which went to the policy and resources committee last month, shows a cost pressure for next year of £163,000 for salt increases and £78,000 for the red diesel.
“Jim will work through the policy, but it is difficult to know until we know how bad the winter is.”
The intended change in respect of red diesel tax was announced in 2019, put into law in 2020 with April 2022 being the initiation date. Surely an organisation such as A&B Council would take account of that before now? Of course, the real reason for all this eye rolling and hand wringing is; Expect your Council tax to rise.