Persistently high fuel prices are putting increasing financial pressure on construction firms, with one contractor saying it continues to absorb the additional costs to keep government infrastructure projects on track while seeking relief through existing government provisions.

Ericson Garcia, authorized managing officer of IGWT-JAV Construction & Development Corporation, said diesel and gasoline prices, which remain at around P70 to P80 per liter, have significantly affected the company’s operations.

“For now, there is a big impact, but we are absorbing it,” Garcia said.

He said the company is applying for price escalation on eligible government contracts, a mechanism that allows contract cost adjustments when fuel, construction materials, or other input prices rise due to circumstances beyond a contractor’s control.

Despite higher operating costs, Garcia said the company remains committed to completing its projects and has not reduced its workforce. Instead, it has maintained — and in some cases increased — its manpower to sustain project implementation.

The company has also sought time extensions for some projects, while others have been temporarily suspended because of technical issues unrelated to fuel costs, including soil integrity problems discovered during construction.

Garcia warned, however, that prolonged fuel price increases could eventually slow infrastructure development.

“If fuel prices continue to rise and remain unstable, infrastructure projects will definitely be affected,” he said.

He added that while the company is exploring ways to offset losses, sustained increases could force contractors to become more selective in accepting projects, potentially leading to fewer projects and workforce reductions if operating costs become unsustainable.

Garcia appealed to the government to consider measures that would ease the burden on contractors and consumers, including possible adjustments to taxes on fuel.

He specifically cited the value-added tax on fuel, saying lowering it would help reduce operating costs for businesses while providing relief to consumers.