Construction entrepreneurs in Nepal have called on the government to ঘোষণা a “construction holiday” due to the sharp rise in the cost of building materials driven by increasing petroleum prices.
In a press statement, the Federation of Contractors’ Associations of Nepal (FCAN) said that the surge in fuel and material costs is placing heavy financial pressure on both contractors and government agencies. The federation warned that it may be forced to suspend construction activities until prices stabilize.
The price hike is linked to the ongoing crisis in West Asia, which has pushed Brent crude oil prices from $73 to over $103 per barrel within a month. Analysts have warned that prices could climb as high as $200 per barrel if tensions in the Gulf region persist.
Domestically, the Nepal Oil Corporation recently increased fuel prices, raising petrol by Rs 15 per liter and diesel by Rs 10 per liter. The state-owned company has acknowledged difficulties in maintaining price stability due to disruptions in oil supply.
The rising fuel costs have also triggered demands from transport operators to increase fares, with some already implementing higher rates. Meanwhile, FCAN has alleged that certain importers of bitumen—a petroleum-based material used in road construction—have created artificial shortages through cartel practices, further driving up prices.
According to the federation, the price of iron rods has risen from Rs 85 to Rs 100 per kilogram, while cement prices have increased by Rs 50 per sack.
FCAN has urged the government to revise project costs in line with the Public Procurement Act and regulations, ensuring that contracts reflect current market prices. It has also called for immediate measures to stabilize supply and pricing to prevent a complete halt in construction activities.
