Fuel prices spark concerns about job losses in construction sector

Rising fuel prices are sparking fresh concerns about cost overruns and possible job losses in the construction sector, with industry players warning that project delays could become unavoidable.

Petrol prices rose by more than R3 per litre this month, while diesel increased by over R7.

In response, government has announced temporary relief measures, including a R3 per litre reduction in the fuel levy.

Construction Alliance South Africa (CASA) said escalating fuel costs are translating into higher transport expenses, more expensive material supplies and increased operating costs for heavy machinery, all of which could slow project delivery.

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CASA spokesperson Musa Shangase said without greater collaboration, smaller contractors in particular may be forced to scale back operations or reduce staff.

"CASA calls on all stakeholders across the built environment to engage constructively on practical solutions that protect both project viability and jobs -- while addressing economic realities."

Finance Minister Enoch Godongwana said government is monitoring international developments, including ongoing tensions in the Middle East, which are contributing to fuel price volatility.

Godongwana said the temporary fuel levy relief could be extended if conditions worsen.

"We will be observing what is happening internationally. If it becomes necessary to provide similar relief for a further period, we will look at implementing it for May and June."