Ilocos Norte contractors seek gov’t aid amid rising fuel, material costs

Local contractors in Ilocos Norte are calling for urgent government intervention as surging fuel and construction material prices continue to disrupt operations, forcing project slowdowns, suspensions, and cancellations, while also placing pressure on workers in the industry.

In a collective interview, contractors described the situation as an “emergency” for the construction sector, citing the abrupt increase in costs that has made many projects difficult to sustain. Several contractors admitted that some works have already been suspended, while others have been canceled due to the sharp rise in operational expenses.

They reported that construction materials have increased by approximately 30 to 40 percent, affecting essential supplies such as cement, steel, and aggregates. However, the more pressing concern lies in fuel prices, particularly diesel, which has nearly tripled in recent months.

The surge in fuel costs has significantly impacted construction activities, especially for projects that rely heavily on equipment such as roadworks, bridges, and dam construction. Heavy equipment operations, which consume large volumes of diesel, have become increasingly costly to maintain.

“Heavy equipment requires substantial fuel consumption, and with current prices, operations have become extremely difficult to sustain,” one contractor said.

They added that the unpredictability of price movements has made project planning nearly impossible, with cost estimates quickly becoming outdated.

“Everything is uncontrollable at this point,” another contractor noted, pointing to the volatility affecting the industry.

As a result, contractors said they are being forced to scale down operations, delay timelines, or discontinue projects altogether—developments that also affect workers, suppliers, and the local economy.

Meanwhile, in a separate interview, Artemio Murillo, president of IGWT-JAV Construction and Development Corporation, confirmed the severity of the situation, particularly in fuel costs.

Murillo said diesel prices have risen from around ₱54.50 per liter to about ₱150 per liter, nearly tripling previous costs and placing significant strain on operations.

“The unprecedented spike in prices, particularly diesel fuel and gasoline, greatly affects our site operations,” he said, noting that equipment-intensive infrastructure projects are among the hardest hit.

He cited that one of their projects consumes approximately 20,000 liters of diesel per week, further magnifying the financial burden.

Despite these challenges, Murillo explained that projects cannot simply be halted due to contractual obligations. Instead, companies are forced to slow down operations.

“We cannot just stop the projects because of the sudden increase in fuel prices. We can only slow down progress,” he said.

To cope, his firm has reduced the number of operating equipment, requested price adjustments, and applied for time extensions, while maintaining its workforce and avoiding layoffs for now.

However, he warned that if the situation persists, additional cost-cutting measures may be implemented, including limiting overtime work and possibly reducing workdays or manpower.

Contractors emphasized that the impact of the crisis goes beyond businesses, as construction workers and laborers are also directly affected. Reduced work hours, fewer active projects, and the possibility of workforce adjustments threaten the livelihood of many families dependent on the industry.

They stressed that both contractors and manpower need support, noting that the burden of rising costs is shared across the entire construction sector.

Without timely government assistance, they warned that more projects could be delayed or canceled, further affecting employment and slowing development efforts in the province.