Rising global oil prices could significantly affect the cost of government infrastructure projects, particularly those dependent on fuel and construction materials, Department of Public Works and Highways (DPWH) Secretary Vince Dizon said.

Speaking in an interview on DZRH, Dizon said many public works projects, including roads, bridges and other infrastructure, rely heavily on fuel to operate heavy equipment.

He added that higher fuel prices could also drive up the cost of essential construction materials such as steel, cement and asphalt.

“Ang atin pong mga proyekto na kailangang matapos; mga kalye, mga tulay, at iba pang infrastructure, marami diyan ay dependent sa fuel lalo na ang heavy equipment,” Dizon said.

Global oil prices have reportedly reached about $120 per barrel, with diesel prices rising in recent days partly due to market speculation linked to tensions in the Middle East.

Despite potential cost pressures, Dizon assured the public that the government has mechanisms to manage such increases.

Infrastructure contracts include price escalation clauses and variation orders that allow adjustments in cases of unexpected increases in fuel or material costs.

“Pwedeng mag-adjust ng presyo o magkaroon ng variation order kapag iniimplement na ang mga bagong project ngayong 2026,” he said, emphasizing that these measures must be implemented properly and not abused.

Dizon also said President Ferdinand Marcos Jr. has instructed government agencies to continue pushing infrastructure development despite global uncertainties.

He cited ongoing roadworks along the Maharlika Highway in Eastern Visayas, particularly between Catarman, Northern Samar, and Tacloban City, which have improved travel times in several sections.

The DPWH is also processing payments to contractors for completed project milestones, although disbursements depend on cash releases from the Department of Budget and Management (DBM).

According to Dizon, only about half of the payments for some projects have been released during the first quarter as the agency awaits additional funds from the DBM.

“Ngayon pong first quarter, nasa 50% pa lang po dahil na hinihintay pa po natin yung cash galing sa DBM… Pero ngayon meron na hong dumating ulit kahapon, meron na tayong in-expect ulit this week,” Dizon said.

He assured contractors that once funds are released and project accomplishments are verified, payments will proceed without delay.

“So basta po pagpasok ng pondo galing sa DBM, basta po tama yung physical accomplishment ng proyekto, eh tuloy-tuloy po ang pagbabayad natin.”