The Federation of Contractors’ Associations of Nepal (FCAN) on Monday, March 16, urged the government to declare a “construction holiday” until prices of construction materials stabilise.
In a statement, the federation said the recent surge in prices of fuel and other material during the peak construction season would impose a heavy financial burden on contractors as well as public agencies. It warned that contractors may be forced to suspend ongoing projects.
The call comes after the Nepal Oil Corporation (NOC) late Sunday increased the retail price of petroleum products. Petrol prices rose by Rs 15 per litre, while diesel and kerosene increased by Rs 10 per litre, effective from Monday.
According to the NOC, escalating conflict in West Asia and the ongoing Russia-Ukraine war have pushed up crude oil prices in the international market, raising import costs and leading to the latest price hike.
FCAN also alleged that a limited number of importers have engaged in cartel practices, creating an artificial shortage of bitumen. As a result, the price of bitumen has increased by up to Rs 40 per litre compared to the price at the time of booking, added the statement.
“The country's construction industry has been further affected by the recent ban on the export of bitumen by India,” the statement said.
It added that the prices of steel rods and cement have also increased, worsening the situation for the construction sector, which is already struggling due to delayed payments.
FCAN has also urged the government to ensure price adjustments in ongoing projects in accordance with the Public Procurement Act and related regulations.
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