If high fuel prices persist, the City of Vernon is expecting to have a fuel budget shortfall of $270,000 in 2022. (Christopher Katsarov photo)

If high fuel prices persist, the City of Vernon is expecting to have a fuel budget shortfall of $270,000 in 2022. (Christopher Katsarov photo)

City of Vernon on pace to exceed fuel budget significantly as prices soar

The fleet fuel budget will have an estimated shortfall of $270,000

With fuel prices soaring, the City of Vernon is anticipating a steep fuel budget shortfall.

The city’s 2022 Fleet Services department has an approved fuel budget of just over $487,000, which covers all departments not including the RCMP. This amount was forecast when the 2022 budget was prepared last July, when the city was paying $1.37 per litre for gas and $1.26 for diesel.

However, with fuel prices skyrocketing, the city is now looking at an estimated fuel budget shortfall of $270,000 for 2022, if current prices persist.

“Oil and fuel prices have been extremely volatile in 2022,” reads a memo to council dated March 15, explaining that as of that date the city is paying $1.81 per litre for gasoline and $1.99 for diesel.

The city says the volatile fuel prices have also led to a significant rise in the cost of vehicle parts and supplies, with tire prices alone increasing by 19 per cent since January.

“Non-local vendors are also adding additional fuel surcharges to regular purchase prices,” the memo states.

If vehicle parts and supply prices stay as high as they are currently, the budget for those expenses will be exceeded by 10 per cent, or $50,000.

To brace for the potential shortfall, administration has recommended that council allocate $320,000 of the 2021 unexpected and uncommitted balance. Administration would report back at the end of the year with actual costs and determine how much of the allocated funding was needed to support fleet operations.

Council will review the matter at its next regular meeting on Monday, March 28.

READ MORE: B.C. to provide $110 one-time rebate to relieve high gas prices

READ MORE: Canada to hike oil, gas output 300,000 barrels a day to help displace Russian fuel


Brendan Shykora
Reporter, Vernon Morning Star
Email me at Brendan.Shykora@vernonmorningstar.com
Follow us: Facebook | Twitter

Gas prices

Be Among The First To Know

Sign up for a free account today, and receive top headlines in your inbox Monday to Saturday.

Sign Up with google Sign Up with facebook

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Reset your password

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A link has been emailed to you - check your inbox.



Don't have an account? Click here to sign up
Pop-up banner image