Diesel Price Surge Threatens Australian Infrastructure

0:00Rising diesel prices from the Middle East conflict are driving of costs for major public infrastructure projects in Australia by millions of dollars. Builders handling roads, water systems, and housing works say the surge in fuel expenses is putting contracts under severe strain and they're pushing for government top-ups to keep things moving. Fuel prices hit $3.14 per liter for diesel and $2.56 for unleaded on Thursday. Fuel construction depends heavily on diesel for machinery and materials like plastics and cement. And while Australia's fuel supply is steady for, now industry groups warn of potential shortages if the global oil disruptions drag on. Builders, transport operators, and farmers are all feeling the pinch with many absorbing the extra costs under fixed-price deals. A gold-coast plumber has started stockpiling plastic pipes for the next 12 months to meet contracts, calling it an existential threat to his, business. Housing Minister Clare O'Neill acknowledges the broad economic challenges, especially

1:04for PVC piping for measure, and is meeting regularly with industry. Leaders, groups like the Civil Construction Federation have launched a tool to help firms calculate fuel cost impacts and negotiate relief. Master Builders Australia reports surcharges like $8 per cubic meter for concrete and over 28% hikes on plastic products, which add up fast on big invoices. National Cabinet will soon meet again to gauge the oil crisis's full effect on the economy as leaders stress the need for flexible contracts, cost sharing, and priority supply chains to avoid stalling home builds and worsening housing shortages. This has been Sydney News Today, powered by AI. I'm Cory with the Story.