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Construction entrepreneurs have said that continuous increase in petroleum product prices has had a direct and severe impact on the construction sector.

At a press conference held on Saturday in Phungling, the Contractors' Association, Taplejung said that rising fuel costs have driven up the prices of construction materials, creating significant challenges across the sector.

Contractors reported difficulty completing previously awarded projects due to the unexpected surge in costs.

According to Jas Bahadur Chemjong, chairperson of the Contractors' Association, Taplejung, the sharp rise in prices has made it increasingly difficult to purchase fuel and essential construction materials.

He added that shortages of materials required for road blacktopping have further disrupted ongoing projects. Items such as steel rods, gravel, and sand have also become hard to obtain, he said.

District Secretary of the Contractors' Association, Taplejung, Yugraj Gurung, said that the combined effect of price hikes and material shortages has severely impacted the construction industry, placing contractors under considerable financial strain. Citing the worsening situation, contractors warned that the construction industry is on the verge of collapse and have even declared a “construction emergency.”

To address the crisis, they have proposed two key measures to the government. First, they have urged a revision of project budgets based on current market prices, including fuel and materials, for projects that are already underway.

Second, they have called for the implementation of a nationwide “construction holiday” policy.

Chairperson Chemjong emphasised that failure by the government to respond to these demands could bring the construction sector to a standstill. He also urged authorities to take the situation seriously.

According to the association, there are more than half a dozen large-scale projects and hundreds of small and medium-sized projects currently under way in the district. A total of 214 contractors are officially affiliated with the association, with many others operating independently.