Thursday, May 28th, 2026

Business bodies urge government to address construction sector crisis amid rising fuel prices



KATHMANDU: Private sector umbrella organizations Confederation of Nepalese Industries and Nepal Chamber of Commerce have urged the government to address the growing financial and psychological pressure faced by construction entrepreneurs due to rising fuel prices triggered by the ongoing conflict in the Middle East.

In separate statements issued on Thursday, both organizations called on the government to take immediate measures to support construction businesses and help keep the overall economy active.

Construction entrepreneurs say sharp increases in the prices of diesel, kerosene, bitumen, construction materials, and transportation costs have pushed the industry to the brink of shutdown.

According to the Federation of Contractors’ Associations of Nepal, construction businesses have already suffered losses exceeding Rs 10 billion due to the recent price hikes.

The Confederation of Nepalese Industries warned that the ongoing rise in fuel prices caused by tensions in the Middle East is directly affecting Nepal’s economy and could slow down industries linked to construction projects.

Similarly, the Nepal Chamber of Commerce said increasing costs, delayed payments, and administrative complexities have placed construction entrepreneurs under severe stress, urging the government to immediately implement policies and decisions to prevent the sector from slipping deeper into crisis.

Publish Date : 28 May 2026 19:33 PM

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