oil costs

Saint John’s economy could be facing inflationary pressure due to rising oil prices.

In a presentation on the city’s general and utility operating budgets at Wednesday’s finance committee meeting, accountant Craig Lavigne said no major financial events occurred during the first three months of the year.

However, he said the city could face financial pressures later in the year due to higher fuel costs.

“We are seeing some pressure again with our fleet parts, as well as some overtime budgets,” he said. “So, along with that increase in fuel costs, there could be some unexpected inflation due to those costs.”

Fuel prices have been rising as a result of the conflict in Iran.

Lavigne said the city will need to continue monitoring these pressures as the year goes on.

On the other hand, he said the city’s revenue showed a positive variance of just over $160,000, with building permit revenue performing stronger than budgeted.