Fuel is critical to the delivery of essential council services – from waste collection to emergency response and community transport. When supply is uncertain or disrupted, the impact can be immediate and far-reaching.

Here are the practical steps you can take now to strengthen your readiness.

A practical checklist for fuel disruption readiness

To stay operational during a fuel disruption, take these actions now:

  1. Get the basics in place
  • Map your priorities: Keep a live register of critical services, vehicles, equipment, fuel types and daily use so you can prioritise allocations.
  • Know your supply and storage: Quantify your minimum fuel needs and check your storage capacity, compliance and safety measures. Confirm NSW EPA, planning and WHS requirements before increasing stock.
  • Strengthen your planning: Review and update your Business Impact Analysis and Business Continuity Framework to include fuel disruption. Look closely at risks across depots, your fleet, staff and contractors so you know where you’re most exposed.
  1. Strengthen your setup
  • Lock in supply: Review supplier contracts for minimum delivery and priority clauses. Consider backup suppliers, mobile refuelling and pre-approved emergency procurement.
  • Set rationing rules: Introduce or update rationing policies with defined limits, approvals and tracking. This supports fast, consistent and auditable decisions.
  • Tighten controls and security: As fuel becomes scarce, theft risks increase. Simple steps like additional site locks and fencing, CCTV, daily stocktakes and fleet controls can help protect your supply.
  • Work with others: Engage with your Local Emergency Management Committee and neighbouring councils. A coordinated approach can improve access to supply and support essential service delivery.
  • Communicate clearly: Provide simple internal scripts for depot staff and clear notices for the community if service levels are impacted. Transparency helps manage expectations.
  1. Make sure it works
  • Keep safety front of mind: Train staff in safe refuelling and spill response. Make sure you have the right permits and approvals before changing storage or delivery methods.
  • Test your plans: Run short drills with fleet, depot and emergency teams. Capture lessons and update your plans so they work in practice.

Insurance considerations for fuel and storage

There are also important insurance factors to consider when managing fuel assets:

Hired in tanks

  • Hire agreements: Ensure hire agreements are reviewed first. Hire companies often pass insurance obligations to councils for damage occurring during transit and while in Council’s care. JLT can help you review your hire agreements to ensure you comply with insurance obligations. This may include the need for transit insurance from pick-up points to a council location (and return).
  • Static risk: Once onsite, Council should declare the value of the tank and the maximum average value of fuel kept at any one time if required by the hire agreement.
  • Environmental exposure: Please reach out to your account manager if fuel leaks – and their resulting clean-up costs to Council and third-party properties – are a concern.

Council-owned fuel storage tanks

  • Make sure all tanks and fuel are listed as declared property – whether they’re at a depot or stored elsewhere. Base the declared amount on the maximum volume of fuel you can hold at any one time.
  • Contact your account manager to discuss any concerns about environmental impairment liability and potential cover available.

Use available tools and resources

There’s a wide range of support available to councils, including:

Taking a proactive, layered approach will put your council in a stronger position to maintain essential services – even when supply is uncertain.

Need more support? Speak with your Regional Risk Manager or Account Manager today.

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