Government Delay in Nepal Leaves Construction Sector in Uncertainty Amidst Rising Fuel Prices
Summary
Rising international petroleum and bitumen prices have left Nepal’s construction sector uncertain as the government has yet to approve procedures for price adjustment under the amended Public Procurement Act. Contractors warn that projects could stall and development work may slow if relief is not implemented soon.
Key Points
- International conflict in West Asia has driven up petroleum products and bitumen prices, raising road construction costs.
- India’s Uttar Pradesh has extended a special price-adjustment arrangement for bitumen until July 30, 2026.
- Nepal has a legal provision for price adjustment in extraordinary circumstances, but implementation procedures are still pending.
- The Federation of Contractors’ Associations of Nepal says the delay is pushing projects toward suspension and could hurt the broader construction sector.
