News | 30 April

Civil infrastructure contractors across Victoria are facing a critical cashflow crisis as persistently high diesel prices—rising by $1.20 to $2.00 per litre—erode already tight margins and, in many cases, exceed project profitability. With limited ability to recover these costs, businesses are being forced into urgent decisions, including downsizing, pausing projects, or shutting down altogether. Industry data shows nearly half of contractors are cutting staff, while others are scaling back or exiting the market within months. This growing financial strain threatens the delivery of essential infrastructure and housing, with industry leaders warning that without targeted government support, the sector risks widespread insolvencies and workforce losses.

https://mailchi.mp/15ddbda5af7d/fuel-cost-shock-pushes-industry-to-brink?e=25dd8927df


“Diesel underpins every aspect of civil construction. When prices spike at this scale, the impacts are immediate, systemic and unavoidable.”

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