Government goes on front foot to attack fuel supply issues

A meeting of high level housing and property groups has committed to developing a plan to address the current impact on construction caused by the fuel crisis.

Chaired by the Building Commissioner and attended by the NSW Minister for Building, the roundtable held on Wednesday was an opportunity for the Government to understand the challenges facing builders and assess the level of risk currently facing the industry.

Oil based products are a critical input to residential housing construction. Diesel, petrol and LPG power essential equipment, transport workers to construction sites and are critical components to a wide range of building products, from concrete to PVC pipes. 

Disruptions, price increases or uncertainty in fuel supply can affect productivity, costs, timeframes and project viability, with flow‑on impacts across the housing construction supply chain. 

Following this initial roundtable, the Government and industry groups have committed to:

• Sharing qualitative and quantitative information on construction material pricing, supply and quality, project timeline changes, and fluctuations in workforce capacity;
• Taking submissions from key stakeholders on ways the Government can support them;
• Developing a plan addressing current fuel supply impacts and future opportunities for alleviating these pressures.
• Hosting a follow-up meeting next month to address ongoing risks.

Key stakeholders in attendance included the Master Builders Association NSW, Housing Industry Association NSW, Urban Development Institute of Australia NSW, Unions NSW, Urban Taskforce, Property Council of Australia, Master Plumbers and the Plumbers Union.

This roundtable was an important next step for Building Commission NSW to deepen its understanding of industry experience, as well as emerging issues, risks, and practical impacts in the sector.

“We know that builders across the state are experiencing rising construction costs amid higher fuel prices and supply chain disruptions.

“The Minns Labor Government is focused on building more homes to buy and rent for the people of NSW – and we are working in lockstep with the construction industry to ensure these homes are high-quality, safe and sustainable,” Anoulack Chanythivong, the Minister for Building, said.

“The Government will continue working with the construction sector to monitor the impacts of ongoing fuel and material supply challenges.”

NSW Building Commissioner James Sherrard said the roundtable would examine how ongoing fuel supply issues are affecting builders and the flow on it is having for homeowners.

“This feedback will play a key role in shaping how the NSW Government responds to these challenges and how we support the residential construction industry in a challenging time,” Sherrard said.

Property Council NSW Executive Director Anita Hugo said fuel and materials supply pressures are beginning to present real risks for construction costs, project timelines and delivery certainty across the housing pipeline.

“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,” Hugo said.

“Working directly with industry to share real‑time data and develop practical solutions will be critical to maintaining project momentum, protecting housing supply and avoiding unnecessary delays.”