Iran conflict drives 41% increase in council fuel bill

Alec Doyle, Local Democracy Reporter

The Iran conflict is having a direct impact on council finances as fuel prices skyrocket.

Flintshire County Council says in the last month its fleet fuel costs have gone up 41% as a result of rising petrol and diesel prices.

Fuel prices have spiralled since the conflict began as Iran stopped oil tankers passing through the Strait of Hormuz.

That has forced the prices of petrol and diesel to increase rapidly. In Flintshire the cheapest price for petrol at the start of March was 127.9p per litre and for diesel was 139.9p per litre. By March 25 that had increased to 145.9p for petrol and 168.9p for diesel.

In Wrexham the price of petrol has increased from 127.9p per litre at its cheapest to 142.9p while diesel has risen from a low of 136.9p per litre to 165.9p.

Wrexham County Borough Council says it is still too early to assess the impact of fuel price increases on its finances – but Flintshire County Council revealed that the price rises were indeed putting pressure on its finances.

Flintshire keeps a close track on its spending, having been forced to make significant cuts and council tax increases over recent years to balance its budget.

It says the conflict has delivered an economic shock at a time when final budget projections had been calculated and the 2026/27 budget finalised.

While the authority remains confident the increase will not exceed the budget set aside for fleet fuel by April 1, if the conflict continues it admitted the pressure on next year’s finances could become an issue.

Katie Wilby, Chief Officer for Streetscene and Transportation, said: “It is challenging to quantify the full impact of rising fuel prices at the present time, as many council services rely on fleet vehicles.

“A precise estimate of the additional cost since late February 2026 is not yet available due to ongoing volatility. However, the council has seen an increase in fuel purchase prices, with costs rising by around 41% over the past month.

“Based on current information, it is not anticipated that overall fuel spend will exceed the fleet budget by the financial year end.

“However, increasing fuel prices are feeding through into operational expenditure and are expected to place additional pressure on budgets if current trends continue.

“Fuel costs are primarily managed through the council’s central fleet budget, which was set in February 2025 based on stable prices at the time.

“The most recent spikes in inflation and energy prices due to the conflict in the middle east could not have been predicted when the council finalised the budget in February 2026 for the year ahead.

“Over the previous 12 months, the position remained broadly stable through to December, but recent increases mean those assumptions have now changed, and expenditure is expected to be higher than previously anticipated.

“While there is some emerging pressure, this is being closely monitored, and it is too early to determine the full impact across services.”

She assured residents that there were currently no plans to reduce or change services such as waste collections.

“Vehicle use is being kept under review to ensure efficiency and there are currently no changes to core frontline services such as waste collections or home to school transport services, which will continue as normal for the foreseeable future,” she said.

“Reduced demand in some seasonal fleet activities is also helping to offset fuel usage.

“The council will continue to keep the position under close review and take a prudent approach to managing expenditure while maintaining essential services.”

Wrexham Council said it was continuing to monitor the situation.

“Like all councils and public services, we’re monitoring the situation, and if things do become more complex we’ll calmly consider the options open to us,” said a spokesperson.

“However, the increased cost of fuel is not having any impact on council services at the moment – it’s business as usual.”