Arabic version: مشاريع البناء تواجه تأخيرات بسبب ارتفاع أسعار الديزل
The construction sector is warning that projects could grind to a halt without funds to assist with diesel costs. According to ABC News, builders are experiencing multi-million-dollar blowouts in major public infrastructure projects due to escalating diesel prices.
Industry groups warn some projects could stall without additional government support to cover fuel-related costs. Civil construction heavily relies on diesel for machinery and materials, with the current national average price for diesel reaching $3.14 per litre, significantly impacting project budgets.
To address the financial strain, the Civil Construction Federation (CCF) has developed a tool to help companies assess the impact of soaring fuel prices. CCF chief executive Nicholas Proud noted that diesel costs represent about 7.75% of project tenders, which could translate into substantial additional expenses on large-scale projects.
Prime Minister Anthony Albanese is preparing to hold a second emergency national cabinet meeting to discuss the global fuel crisis on Monday, while Housing Minister Clare O’Neil is engaging with industry leaders to explore potential government assistance.
The rising costs are not only affecting public projects but are also causing significant challenges for private developers. Master Builders Australia chief executive Denita Wawn emphasized the need for flexibility in project timelines and cost-sharing arrangements to navigate the current crisis effectively.
