BREAKING: Tipp CEO warns of inflation surge due to war in Iran

Tipperary County Council is putting in place contingency plans in anticipation of a surge of inflation resulting from soaring fuel prices.

The local authority's April monthly meeting was held online on Monday due to anticipated disruption from the fuel protests across Ireland last week and over the weekend and elected members were warned to brace for soaring costs which may disrupt the council's budgeting plans.

CEO of Tipperary County Council, Sinead Carr, told the meeting that the ongoing conflict involving Israel, the United States, Iran and Lebanon may have profound effects on the cost of fuel and essential materials used by the council.

Ms Carr said over 60% of the local authority's diesel fuel is consumed by machinery and 12% is used by the general road works and housing maintenance teams and the remainder is used by the Fire Services and environment departments.

Drafting plans to cope with a surge in costs resulting from disruptions in the flow from the Middle East to international markets began six weeks ago in Tipperary "to get us out ahead of it and be ready should the situation arise," the CEO said.

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"We've had some discussion at management level about the impact of the conflict and the increase in fuel costs and the council is no different than any other business in the impact fuel costs have had on our operational costs.

"There is very likely to be an increase in inflation as a result of that, it might take a bit longer to work through the system, but that will also certainly impact us and I know it impacts our commercial rate payers," Ms Carr said.

The local authority management met with the Corporate Policy Group to provide an update on what potential issues might face the council and how they will respond at the appropriate time, she said.

"We're not taking any immediate action yet, but I have asked all the Directorates to look within their own area and to look at an additional increase of 2% inflation and to manage their budgets accordingly," the CEO said.

Ms Carr said that focusing on roads they advised to prepare the potential additional costs for fuel "of anywhere between €250k to €400k if fuel increases by between 10% to 33%."

"If we are likely to see those costs going through the year we're looking at having to save and cut back on services anywhere between €250k to €400k and if we have to take those cuts it would likely be from June onwards.

"We want the organisation to be in a position that we can manage the situation should it arise and not exceed the budget adopted by the members.

"We are actively managing the situation, the plans are in the process of being drawn up and we will come back to the council in the event the ceasefire does not hold and no resolution is found in the ongoing situation in the Middle East" the CEO said.