KATHMANDU, March 18: Construction entrepreneurs have demanded the government declare a ‘construction holiday’ citing the soaring prices of construction materials due to rise in prices of petroleum products.
Issuing a press statement, the Federation of Contractors’ Associations of Nepal (FCAN) has urged the government to make such an announcement. “In the meantime, the rise in prices of construction materials along with fuel prices is expected to increase financial liabilities of both the contractors and the government authorities. In this context, the federation is compelled to halt all the construction works until the sector attains price stability,” reads a statement issued by FCAN.
FCAN apprises PPMO of the hike in price of construction materia...
With the ongoing crisis in West Asia, the Brent Crude has escalated above US $103 per barrel from $73 per barrel in a month. Analysts have cautioned that the price of crude oil could even reach $200 a barrel if US-Iran tension in the Gulf region continues any longer.
In the domestic market, Nepal Oil Corporation raised the price of petrol by Rs 15 per liter and that of diesel by Rs 10 per liter two days ago. The state-owned oil monopoly has even stated that it is facing a tough time to maintain stability in oil prices due to the ongoing crisis faced by Nepal’s oil supplying countries.
Along with the price hike of petroleum products, transporters have been pressuring the concerned authorities to revise the transport fares. A number of transporters have already increased their fares. Likewise, many importers of bitumen, a petroleum product used in black topping, have started a cartel to create artificial shortages, escalating price rampantly, according to the FCAN.
As per the federation, the price of iron rod has increased to Rs 100 from Rs 85 per kg. Similarly, the price of cement has also surged by Rs 50 per sack.
In the statement, FCAN has urged the concerned government agencies to arrange price adjustments for each project in line with the Public Procurement Act and Regulations to reflect recent input cost increases, and called on authorities to take immediate steps to stabilize supply and prices to avoid disruption of construction activity.
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