Construction sector warns fuel blockade could halt housing delivery as costs surge
CIF calls for urgent Government intervention as fuel shortages and rising material prices threaten construction activity nationwide
11 April 2026 | 📧 editor@ipropertyradio.com
The Construction Industry Federation (CIF) has warned that ongoing fuel blockades and rising oil prices could disrupt housing delivery and infrastructure projects, with fears that construction sites may be forced to shut down in the coming weeks.
The industry body is calling for an immediate end to the blockade affecting fuel depots and for urgent Government action to mitigate the impact of escalating fuel costs on construction activity.
The disruption is linked to wider global oil price shocks stemming from the Iranian conflict, with knock-on effects now being felt across Ireland’s construction supply chain.
CIF Director General Andrew Brownlee said the sector is “in the eye of the storm”, with fuel shortages posing a direct threat to site operations.
“Construction sites cannot operate without fuel for essential machinery such as diggers and mobile cranes. The blockade of fuel depots and the oil refinery must end,” he said.
“There is serious concern about fuel supply for site machinery over the coming weeks. If this continues, there is a real danger that sites will come to a halt.”
The CIF said the impact is already being felt, with rising fuel costs feeding directly into the price of key construction materials. Cement, concrete and steel production are all energy-intensive processes, and recent increases have compounded existing cost pressures across the sector.
According to the federation, 79% of its members had already expressed concern about raw material costs prior to the current الأزمة, with prices now rising further in recent weeks.
As an island economy, Ireland is particularly exposed to transport and logistics costs, which form a significant component of overall construction expenditure. The CIF said blockades at ports and along transport routes are beginning to disrupt the delivery of materials, with reports of delays to concrete supply reaching construction sites.
For consumers, this raises the prospect of further upward pressure on the cost of new homes and potential delays in project completion timelines.
In response, the CIF is urging Government to introduce a series of temporary measures aimed at stabilising costs and maintaining construction output. These include further reductions in fuel excise duties, particularly for marked gas oil (MGO), which is widely used in construction machinery.
While changes introduced on 24 March reduced Mineral Oil Tax on auto diesel by 20 cent per litre, the reduction for green diesel was limited to 3 cent per litre. The CIF argues that this disparity fails to reflect the sector’s reliance on MGO.
The federation is also calling for the removal of VAT on fuel, in line with measures adopted in Spain, as well as a pause on planned increases in carbon tax and a temporary suspension of the concrete levy.
Mr Brownlee said these steps are necessary to protect the delivery of critical national infrastructure and housing.
“The construction industry remains fully committed to delivering Ireland’s essential housing and infrastructure projects. Every effort must be made to protect and maintain this vital national roadmap of absolutely essential public works,” he said.
The situation is being closely watched across the sector, with industry stakeholders warning that prolonged disruption could have significant implications for housing supply at a time of continued demand pressure.
