The New South Wales government has held a roundtable with housing industry heavyweights and union leaders to address the growing threat that volatile fuel supplies and rising prices pose to the state’s residential construction pipeline.
Chaired by the NSW Building Commissioner and attended by the Minister for Building, Anoulack Chanthivong, the meeting aimed to gauge the risk levels facing a sector already grappling with thin margins.
The talks focused on how the global spike in fuel costs, particularly diesel, petrol, and LPG, is driving up the price of essential building materials like concrete, PVC pipes, and bitumen.
Oil-based products are a fundamental pillar of the construction industry. Beyond transport, fuel powers the heavy machinery required on-site and serves as a key chemical component in a wide array of building supplies.
“Fuel and materials supply pressures are beginning to present real risks for construction costs, project timelines and delivery certainty across the housing pipeline,” said Property Council NSW Executive Director Anita Hugo.
“Early intelligence from our members points to growing exposure to diesel price volatility, higher costs for fuel‑intensive materials such as PVC and emerging concerns around bitumen availability.”
In response to the ongoing fuel scarcity, the government and peak bodies, including the Master Builders Association and the Housing Industry Association, have committed to a new information-sharing pact.
This will involve the real-time exchange of data regarding material pricing, supply chain fluctuations, and workforce capacity.
The government and industry groups have also agreed to develop a plan addressing current fuel supply impacts and future opportunities.
Minister Chanthivong said the government remains focused on its goal of increasing housing supply despite the headwinds.
“We know that builders across the state are experiencing rising construction costs amid higher fuel prices and supply chain disruptions,” the minister said.
“We are working in lockstep with the industry to ensure homes are high-quality, safe, and sustainable.”
The roundtable marks the beginning of a sustained collaboration, with a follow-up meeting scheduled for next month to assess whether further government intervention is required.
