CIF calls for end to fuel blockade and urgent Government action to reduce the cost impact of the fuel crisis

The CIF is calling for an immediate end to the ongoing fuel blockade and for Government action to alleviate the pressures the fuel crisis is placing on the construction sector.

Andrew Brownlee, CEO of the CIF, said:

“The construction industry is in the eye of the storm as the Irish economy continues to be blighted by the ongoing impact of oil price shocks resulting from the Iranian conflict and its knock‑on effects, including the blockade of fuel depots.

“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. 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 spike in fuel costs is already placing significant pressure on construction companies.

“Raw materials such as cement, concrete and steel are produced through fuel‑intensive processes. Costs for these materials have risen sharply within weeks, exacerbating an already challenging situation in which 79% of our members were concerned about raw material costs. As a small island economy, transport and logistics represent a significant share of material costs, and we are now seeing price increases across the board.

“The fuel protests are beginning to disrupt the delivery of construction materials to sites due to blockades at ports and along transport routes. We are already hearing reports of concrete deliveries being negatively affected.”

The CIF is urging Government to take all possible steps to mitigate the significant cost increases experienced in recent weeks, including:

1. Further reductions in excise duties on fuel, recognising that more than 50% of pump price is returned to the Government through various forms of taxation.
2. Recognition of the critical importance of reducing costs related to construction‑critical MGO fuel. The Government’s 24th March changes reduced Mineral Oil Tax on auto/white diesel by 20 cent per litre, but only by 3 cent per litre for green diesel/MGO. Additional action is needed to address costs associated with this essential fuel that powers the construction industry.
3. Removal of VAT on fuel, aligning with the approach taken in Spain.
4. A pause on any increases to carbon tax on fuel, materials, and other construction‑related costs that would further add to the cost of delivering housing and infrastructure projects.
5. A temporary pause on the concrete levy as a measure to offset the current cost pressures on the sector.

Andrew Brownlee added: “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.”