Construction sector warns diesel price surge threatens project delivery
The construction industry association says rising diesel costs are endangering the completion of building contracts and urges immediate government action.
The Associação dos Industriais da Construção Civil e Obras Públicas Nacional (AICCOPN) warned that the recent rise in diesel prices is directly inflating the cost base of construction companies, jeopardising the timely execution of public and private projects. Because the sector depends heavily on heavy equipment and road transport, the association stressed that the fiscal burden on diesel in Portugal is significantly higher than in neighboring Spain.
In response, AICCOPN urged the government to broaden the professional diesel scheme to include construction firms, temporarily lower the diesel VAT from 23% to 13%, and eliminate the fuel tax gap with Spain. It also advocated for stronger price-adjustment clauses to reflect sudden cost spikes in active contracts. The group has appealed directly to the President of the Republic, emphasizing that without mitigation measures, the surge in fuel costs could undermine the sustainability of contracts and slow national investment in housing and infrastructure.
Why it matters
Higher diesel costs could delay or halt construction projects, affecting housing supply and economic growth.
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