Contractor associations are demanding a temporary construction holiday and immediate rate revisions after diesel prices surged 12% this month. Industry leaders say fuel now accounts for a crippling share of operating costs on ongoing public projects.
Earthmoving, aggregate transport and generator-powered sites have been hit hardest, with many contractors reporting that current contract rates no longer cover even direct costs. Association representatives warn that without price adjustment clauses, smaller firms face insolvency.
The associations have asked the government to activate escalation provisions in public contracts and to fast-track pending payments. Officials say the demand is under review, though any blanket revision would need cabinet-level approval.