The impact of an almost $500,000 fuel and electricity cost increase on the Ashburton District Council was made public on Wednesday.

The district's upcoming rates rise had been signalled at 8.71% in March, but the war in Iran and an unexpected hike in electricity line charges have pushed that figure up to an average rise of 9.15%.

The rise also includes a 13.05% increase in three waters costs, and 5.43% average for everything else.

Council democracy and engagement group manager Toni Durhmam said the rapid rise in fuel prices, which has been up to $3.50 per litre, could cause an estimated $126,000 shortfall in the 2025/25 budgets.

The council originally estimated fuel prices at $2.50 back in January, and the $170,000 budget won’t cover the increase.

If fuel remains around $3 the council needs an extra $70,000, and if it is more like $3.50 it needs $126,000 more.

The prices are dropping, and “while supply chains are stabilising slightly, they still remain vulnerable to disruption”, Durham said.

The fuel increase is also anticipated to impact the solid waste contracts, with $250,000 added as cover.

As fuel prices rose, the council's electricity line charges also increased.

“We could be $300,000 short in the 26/27 budgets to cover our electricity costs,” Durham said.

Figures at the workshop show the council estimates electricity costs going from around $1.92m in 2024/25 to an estimated $2.35m in 2026/27.

EA Networks Centre, Ashburton's recreation and aquatic centre, makes up an estimated 22% of the electricity costs.

The council also needs to go to the market for a new electricity contract next year and is “unlikely" to get the same rate again.

To counter the cost increases, an additional $83,000 will be added to the budget and the rest ($217,000) will be managed within existing budgets.

In total, $352,000 has been added to the budget, with a saving of $107,000 in operational costs also factored in.

Just before the workshop started livestreaming, deputy mayor Richard Wilson aired frustration at having only received the material that morning.

Chief executive Hamish Riach said they were “numbers you have already seen” in their public-excluded workshops and Wednesday was about bringing the figures into public view.

The final draft will come back to the council meeting on June 30 for adoption.

By Jonathan Leask