The Town of Bassendean is facing significant financial pressure as rising fuel and oil costs, driven by ongoing conflict in the Middle East, force contractors to demand higher payments for essential services. Three key contractors have formally requested fee increases, citing sharp rises in oil and diesel prices linked to regional instability.
Road maintenance most affected
The largest impact is on road maintenance, with Downer, which provides asphalt and profiling services, seeking a 49.5 percent increase in the cost of bitumen products. This spike has led town officers to recommend reducing the roadworks program until prices stabilise.
Waste and cleaning services under pressure
Waste and cleaning services are also affected. Western Maze, trading as WA Recycling Services, has requested a 15 percent increase to verge collection rates while diesel remains over $2 per litre. Enviropath has similarly called for a 15 percent rise for street sweeping services.
Town officers attribute the requests directly to global market uncertainty. “As a result of the current conflict in the Middle East and impacts on oil and fuel, a number of the town’s suppliers have formally requested variations to the contracts,” a report states. “These services have been impacted by the increase in fuel costs and will need to pass these costs on to the town.”
The officers’ report emphasises that the situation is far from normal, noting that standard annual CPI adjustments do not reflect the scale of the increases now being sought. “These are not standard increases,” the report states.
The requests are being assessed under “force majeure” clauses within existing contracts, which allow for variations in extraordinary circumstances such as war or civil unrest. Town officers have recommended approving the variations through June 30, 2026, warning that rejecting them could lead contractors to withdraw services entirely, leaving infrastructure projects incomplete and disrupting community services.
The council is expected to make a decision at its meeting on April 28.
