As gas and diesel prices continue to reach record highs, South Shore municipalities are feeling the pinch as they move money around to pay for drastically more expensive fuel.

The average price of gas in early May 2021 was $2.85 a gallon, AAA reported. Now it's at a record high of $4.39, an increase of 54%.

The cost of diesel fuel, which powers the heavy machinery and equipment used by road crews and public works departments, has more than doubled from an average of $3.03 last May to an average now of $6.27.

Norwell Town Administrator Peter Morin said his town is supplementing the fuel budget with other money to cover this year's costs. While slight fuel budget increases are normal – the budgets are set a year in advance and costs change regularly – the rapid increase in the price of gas since Russia's invasion of Ukraine has meant a lot more money is needed for fuel.

"In our situation, we're in pretty good shape, and it won't force us to make choices of what to fund and what not to fund," he said.

The increase will eat into money reserves or free cash, which is usually used to finance capital projects, Morin said.

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Norwell is not alone in feeling the crunch. In Marshfield, town meeting voters put an additional $125,000 into the fuel budget following a reserve transfer of $40,000, for a total increase of $165,000.

Marshfield will likely adjust the budget again at the fall special town meeting, depending on how much fuel prices go up or down, Town Administrator Michael Maresco said.

"It's imperative we have the money to fuel police cars, fire apparatus, the DPW trucks and the general motor pool cars," he said.

Maresco said the town is in good financial shape and will continue to provide the same services as always, just at a slightly higher cost.

Rockland Town Administrator Doug Lapp said his fuel budgets are spread across each town department, and he estimates costs this year are going up $75,000 to $100,000. 

Hull Town Manager Phil Lemnios said fuel costs also affect everything else, such as a paving project that incurred a $160,000 surcharge.  In Weymouth, fuel prices are increasing the cost of road improvements.

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"We're seeing it show up in product prices and also showing up in direct fuel costs," Lemnios  said. "We planned for fuel reserves in the budget, a couple hundred thousand."

The Hull harbormaster is facing greatly increased patrol costs because of fuel prices, and has adjusted his schedule because his department runs off the revenue it generates, Lemnios said.

He said the town can bear the increased burden of fuel costs but the indirect impacts are going to be felt throughout the entire economy. Construction costs have also risen rapidly as supply chain issues drive up the cost and diesel fuel is at record-high levels.

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Marshfield Harbormaster Mike DiMeo said he is usually within his budget for fuel, but he may cut it close this year. Instead of cutting back on patrols, he will continue to conduct patrols with help from Scituate.

Braintree Mayor Charles Kokoros said fuel costs have essentially doubled since the first  fiscal 2022 budgets were drafted. The newest budget calls for a 258% increase in the gas budget and a 347% increase in the diesel budget, he said.

For some communities, the increased costs haven't affected the bottom line yet. Quincy Public Works Commissioner Al Grazioso said the city is locked into "some pretty good pricing" until August, and possibly longer, because of a fuel contract it signed in December 2020.

"It hasn't hit us yet," he said.

Grazioso said he expects rising fuel prices to hit next year's budget as the city negotiates a new fuel contract.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@patriotledger.com.