Key Points
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Diesel hits $3.14/L, driving up costs for roads, housing, and major public works
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Industry warns projects could stall without government help on fuel bills
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National Cabinet to meet Monday as Middle East conflict pressures supply chains
Rising diesel prices are blowing out the cost of public infrastructure projects across Australia, with contractors warning that some builds may grind to a halt without extra government support.
Civil construction relies on diesel for 79% of its energy use, as well as oil‑based materials like plastic piping and cement. The Civil Construction Federation (CCF) says on a $1 billion project, the diesel component alone adds roughly $46 million in extra costs.
Builders Seek Flexibility
Master Builders Australia reports concrete surcharges of $8 per cubic metre and plastic pipe price hikes above 28%. With many contracts locked in at fixed prices, builders say they are being forced to absorb the blow, pushing some housing projects from profit into the red. They are asking government and private clients for more flexibility on completion dates and cost sharing.
“Existential” Supply Fears
Housing Minister Clare O’Neil said PVC piping from Asia is the “most immediate vulnerability”. Some plumbing businesses have begun stockpiling pipe for up to 12 months, describing the move not as panic buying but as essential to meet contractual obligations.
The National Cabinet will meet again on Monday to assess the economic impact of the global oil crisis as industry pushes for a “cost recovery” mechanism on publicly funded works.
