Fuel Security - Local Government Update

Fuel Security - Local Government Update

Last updated: Friday, 17 April 2026

WALGA is holding weekly meetings with Fuel Security State Controller, Rob Cossart to provide insights from Local Governments that directly inform statewide fuel security and resilience planning.  

WALGA will continue to stay central to ongoing conversations, providing timely updates to the sector as the situation progresses.

All states and territories, including WA, remain at Level 2 on the National Fuel Security Plan, which allows the WA Government to gather timely data and information from the industry. 

The State Government is issuing weekly fuel updates, and WALGA will continue to stay central to the conversations and provide timely updates to the sector as the situation progresses.


Read the WA Government Weekly Fuel Update

Local Government Support 

In response to queries received by WALGA from our Members, please find below information relevant to Local Government operations.

Economic Briefing

Waste

WALGA has continued to highlight to Government that if there is any restriction on fuel supply, waste collection, transport and disposal need to be a priority.

WALGA has contacted Preferred Suppliers to confirm their arrangements and contingency plans for fuel supply. Current information indicates supply is continuing. Both Waste Contractors, and Local Government’s delivering waste services, are currently reviewing their business continuity plans. These plans include consideration of which services would be prioritised or paused. If this becomes necessary, WALGA will work with Preferred Suppliers and Local Government to facilitate a consistent approach.

WALGA has flagged with the Department of Water and Environmental Regulation that some License amendments may be needed to facilitate improved waste collection/consolidation efficiency.

ER Guidance

This information is general in nature and intended to address common themes. It does not replace the need to obtain specific advice where particular issues arise. For specific workforce queries, contact WALGA Employee Relations on 1300 366 956 or [email protected]. 

As a general principle, where an employee is ready, willing and able to work, they are entitled to be paid. Conversely, where an employee does not attend work, or is otherwise not ready, willing and able to work, there is generally no obligation to pay unless the employee is accessing an applicable paid leave entitlement. 

Where an employee is unable to perform their usual duties (for example, where fuel supply issues prevent the operation of particular plant or machinery), an employer may direct the employee to perform alternative duties, provided the direction is lawful and reasonable in the circumstances.

For national system employers (for example, Shires of Cocos (Keeling) Islands and Christmas Island), the Fair Work Act 2009 (Cth) contains statutory stand down provisions.

For WA state system employers (including most WA Local Governments), there is no general statutory stand down provision. However, stand down rights may exist under an applicable industrial agreement or contract of employment, and those instruments should be reviewed carefully.

Before relying on any stand down provisions (whether statutory, contractual or under an industrial agreement), we recommend that specific advice be obtained.

Employees may request, and employers may wish to explore, alternative arrangements to manage fuel related disruption, including working from home.

There is generally no standalone entitlement to work from home under awards or industrial agreements. Working from home is typically a discretionary arrangement, subject to contractual terms and organisational policies.

Any arrangements adopted should be consistent with relevant policies, applied reasonably and consistently, and clearly communicated as temporary and subject to review.

Procurement - Managing Cost Increases and Contract Pressures

We understand that Local Governments are being contacted by suppliers seeking to pass on recent cost increases. Given current global and economic conditions, Local Governments may need to carefully manage requests to increase contract prices.

Possible approaches include:

  • Enforcing existing contract terms, including any price review clauses.
  • Engaging with suppliers to explore solutions that reflect current and anticipated market conditions.
  • Considering a request to vary the price if it is reasonable, appropriate and complies with legislation.

The first step is to review the contract with the supplier: 

  • Check whether the contract allows prices or rates to change. 
  • If changes are allowed, consider whether the increase is reasonable and supported by evidence, or whether a lower increase can be negotiated. 

If the contract does not allow price changes, Local Governments may still consider whether a contract variation is reasonable. 

When responding to a request for higher prices, Local Governments may wish to consider: 

  • The risk of service disruption if agreement cannot be reached. 
  • Whether the contract allows for price changes and any required notice periods. 
  • Whether the supplier has clearly explained the increase and provided evidence. 
  • Whether there is enough budget to cover the increase. 
  • Whether other suppliers are likely to raise prices as well. 
  • How much time is left on the contract. 
  • The costs and effort involved in starting a new procurement process. 
  • How similar requests have been handled in the past. 
  • Whether services could be reduced, delayed, or managed differently to reduce costs. 
  • The legal and practical implications of seeking to enforce existing contract terms. 
  • There may be other factors that are relevant depending on the situation. 

Given current economic conditions, requests for price or rate increases may be reasonable. However, Local Governments must consider the procedural and compliance requirements. 

  • If the contract allows for price changes, follow procedures set out in the contract terms. 
  • If the contract does not allow for price changes and was subject to a formal tender, any variation must comply with the Local Government (Functions and General Regulations) 1996. Regulation 21A(a) allows variations only where they are necessary for the supply of goods or services and do not change the scope of the contract. 
  • If the contract was not tendered, contract variations should follow the local government’s internal policies and procedures. 

The decision to vary a tendered contract must be made by: 

  • Council, or 
  • The CEO, if the variation falls within the CEO’s delegated authority. 

All decisions should be properly documented for recordkeeping and contract management purposes. 

If a budget amendment is necessary, Council approval is required under s6.8 of the Local Government Act 1995. 

If a Local Government considers a request is not reasonable and cannot reach agreement with a supplier, it will need to decide what to do next. 

This may include checking whether the supplier is willing to continue discussions. The Local Government may also need to think about how it will manage its relationship with the supplier.  For example, it may need to consider how it would respond if the supplier’s performance declines, or if the supplier wants to end the contract. 

If the Local Government is considering termination, legal advice may be required. This can help inform next steps and ensure any process to resolve the contract arrangement is handled correctly, with all risks and responsibilities clearly understood.

Fuel for thought webinar

Webinar – Fuel for Thought: A Quarterly Economic Briefing Discussion

WALGA’s Q1 2026 Economic Briefing is now available for Members, featuring insights into fuel supply impacts, inflation, interest rates and updated Local Government Cost Index (LGCI) analysis to support financial planning and decision making across WA Local Governments.

To support Members in understanding the findings and what they mean for their Local Government, WALGA will be hosting a webinar focused on the key insights from the briefing.

Register now
Acknowledgement of Country

WALGA acknowledges the continuing connection of Aboriginal people to Country, culture and community. We embrace the vast Aboriginal cultural diversity throughout Western Australia, including Boorloo (Perth), on the land of the Whadjuk Nyoongar People, where WALGA is located and we acknowledge and pay respect to Elders past and present.

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