Rising fuel prices are driving the Ottawa Police Service into the red this fiscal year. A report for the Ottawa Police Service’s Board’s finance and audit committee shows the service is forecasting a $21.6 million budget deficit in 2026. Staff are projecting a $1 million deficit in the fuel budget this year due to the “impact of increased fuel prices because of the Iran conflict.” The 2026 police budget was drafted with a price of $1.42 per litre. Fuel prices hit $1.95 a litre this spring due to the ongoing conflict in the Middle East and are sitting around $1.70 a litre on Thursday. 2026 budget deficit In June, staff warned the Ottawa Police Service was facing a $25 million budget deficit. The report says while the service has identified $8.9 million in savings and efficiencies in its 2026 budget, the force is still projecting a $21.6 million budget deficit this year. The report for the Ottawa Police Service’s Board’s finance and audit committee shows overtime costs, strategic projects, the staff stabilization plan and other known pressures have created $30.5 million in budget pressures inthe 2026 budget. The biggest financial pressure facing the Ottawa Police Service this year is $10 million in “non-recoverable overtime.” Staff say “maintaining minimum staffing levels in frontline” positions has been the key driver of the overtime budget deficit, while the Court Security Unit is facing a $1.1 million deficit, the Communications Centre is running a $1 million budget deficit, and the Homicide Unit is facing a $300,000 budget deficit. Staff say the service is also facing a $3.5 million budget deficit due to “unallocated efficiencies incorporated into prior-year budgets,” a $3 million deficit in corporate support costs for the staff stabilization plan as the service increases recruitment and onboarding activities and $2.9 million due to “significant, structural and unavoidable pressures.” The report shows the budget efficiencies includes $2.5 million in savings from a salary, hiring freeze, a $2.4 million reduction in non-recoverable overtime costs, $1.5 million in a hiring freeze for non-operational civilian positions and $2 million in savings from “various sources, including lower CPP contribution rates and increased background clearance revenue.”
