Construction sector warns fuel hike threatens infrastructure development

The construction sector is warning that the latest fuel price increase could seriously threaten infrastructure development and project delivery in the country.

The government this week announced short-term relief measures after petrol increased by more than R3 per litre and diesel by more than R7 per litre in April.

The temporary R3 per litre levy reduction was implemented with short-term projections indicating more fuel price instability due to ongoing conflict in the Middle East.

ALSO READ:

Cabinet again assures SA that there's sufficient fuel despite Middle East war

COSATU demands further fuel levy cuts amid soaring costs

Fuel prices: OUTA says government could have avoided panic buying

Construction Alliance South Africa (CASA) spokesperson Musa Shangase said the fuel price increase will affect transport logistics, material supply, heavy machinery operations and construction timelines, in a sector already facing inflation.

"CASA calls all stakeholders across the building environment to engage constructively on practical strategies that balance contractual matters with economic realities."

Finance Minister Enoch Godongwana said the government will consider extending its relief measure of the R3 per litre reduction in the fuel and diesel levy beyond the next two months.

"We are going to be observing what is happening with international developments. If we are going to provide a similar facility for the next other two months... if we do, we will probably do it in May and June."

CASA said no single sector can manage systemic economic shocks related to rising fuel costs alone.