Global Pressures Bite As Mackay Council Faces Tough Budget Decisions

The High Mariner left the Port of Mackay after completing its petroleum discharge, beginning its 13-day journey to Ulsan, South Korea. Photo source: ABC

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The departure of an international fuel tanker from the Port of Mackay has highlighted the global supply chains underpinning local industry, as Mackay Regional Council grapples with rising costs linked to international market pressures.

The vessel High Mariner departed the Port of Mackay after unloading petroleum and is now en route to Ulsan in South Korea, where it is expected to arrive on 2 May to reload. The Liberian-flagged chemical and oil products tanker, built in 2017, services one of the world’s largest refining hubs, with the SK Energy refinery in Ulsan capable of processing up to 840,000 barrels of crude oil per day.

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The shipment comes at a time when global oil markets are under strain, with flow-on effects being felt locally.

Mackay Regional Council has established a dedicated taskforce to address escalating fuel and material costs, as well as supply challenges, with the development of the 2026–27 budget shaping up to be one of the most difficult in the organisation’s history.

Mayor Greg Williamson said global instability, including the ongoing conflict in Iran, was having a direct impact on council operations.

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“It is a key input into many of the everyday materials council uses, including plastic pipes, road construction products and a wide range of maintenance and operational supplies required to deliver essential services,” Mayor Williamson said.

“These global pressures are already being felt locally, and they are affecting almost every part of council’s operations.”

Rising prices have already impacted council finances, with increased costs recorded across March and April in fuel, construction materials and operational inputs.

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“We are facing real and immediate cost increases across our contracts and day-to-day operations,” Mayor Williamson said.

“With current market conditions pointing to further escalation in the months ahead, we are taking a disciplined, informed approach. This week, council met with the Queensland Treasury Corporation’s Chief Economist to better anticipate what is likely and plan accordingly.”

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At the same time, council is managing reduced State Government funding tied to changes in the waste levy framework.

“The cuts to State Government funding through the waste levy have removed a critical revenue stream for councils,” Mayor Williamson said.

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“This is happening while our costs are rising rapidly, creating challenges for local government budgets."

Despite the challenges, council remains committed to maintaining essential services and ensuring long-term financial sustainability for the region.

“We want the community to understand that this is not business as usual,” Mayor Williamson said.

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“Every area of expenditure is being carefully reviewed, and difficult decisions will be required as part of the 2026-27 budget.  

“Council is committed to being open and transparent with our community about the challenges we face and the choices that lie ahead.”

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