The Federal Government has recognised the biting cost of oil by expanding the $21 million Volunteer Grants Program to include petrol.

Under the program, not-for-profit organisations can receive up to $2500 to help pay for their volunteers’ fuel bills.

Organisations including Maitland Meals on Wheels and Maitland Community Care Service, which runs a community bus, are eligible to apply.

Both reported in June that soaring fuel prices were having an impact on the service they provided: Maitland Community Care Service was forced to increase fares by $1 after the bill to run its four buses and five cars jumped by $15,000 and Meals On Wheels had lost up to a dozen drivers as the cost at the bowser crept up.

NSW Meals on Wheels general manager Sue Heffernan said she was encouraging all branches to apply for the funding.

There are 32,000 Meals on Wheels volunteers across the State.

“Some of them get reimbursements, and how much ranges between branches,” she told the Mercury.

“But (the government’s announcement) is welcome news. It’s nice the government recognises the work of volunteers across NSW, and it’s not only Meals On Wheels.”

Hunter MP Joel Fitzgibbon said the government acknowledged the pressure of rising fuel costs on not-for-profit organisations and volunteers.

“For the first time, organisations will be able to apply for a contribution to reimburse volunteers for fuel costs incurred during their voluntary work,” he said.

Under the program, grants of between $1000 and $5000 can also be used to buy equipment, including computers, tools, airconditioners and sporting equipment .

In another first, School Parents and Citizens Associations can apply for funding along with other not-for-profit organisations.

Applications close on October 17 and organisations will receive funding by the end of the year.