Diesel price spike threatens jobs and increases household costs
- Apr 30
- 2 min read
Australia’s construction sector is under pressure as soaring fuel costs force companies to cut staff and delay projects.
Builders say rising diesel prices and higher costs for materials are squeezing margins, pushing some businesses close to shutting down. Without government support, the impact could flow through to home buyers and household bills.
New data from the Civil Contractors Federation shows the strain is widespread. Nearly one in three firms are considering scaling back or closing within six months. About 45% plan to reduce staff, while more than a quarter may pause projects until costs stabilise.
The crisis has been driven in part by global supply disruptions, including the closure of the Strait of Hormuz, which cut a significant share of the world’s oil flow.
Costs have surged across the board. Diesel prices have jumped sharply in recent months, while materials like concrete and plastic piping are also rising due to fuel-linked surcharges.
Industry leaders are calling on the federal government to step in with targeted support in the upcoming budget. Key requests include temporary fuel tax relief, faster payments on government contracts, and financial support for projects hit hardest by rising costs.
Some businesses are already feeling the impact. Contractors report cost increases of up to 20% on ongoing projects, forcing difficult negotiations with clients to share the burden.
There are also human costs. Some operators say ongoing economic shocks from the pandemic to global conflicts have made it too risky to continue.
The government says it is monitoring the situation and working with industry to improve fuel supply and reduce costs. However, builders warn urgent action is needed to keep projects moving and protect jobs.
Source : ABC News
More updates to come on AusNewsLanka.
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