Construction Begins: Measures taken in response to rising oil prices impact construction operating costs

Measures taken in response to rising oil prices impact construction operating costs

The package announced by the Government to contain the rise in international oil prices affects components used in construction activity, particularly those linked to fuel consumption

SANTO DOMINGO. – The measures implemented by the Government in response to the rise in oil prices are impacting operational factors in the construction sector, as they apply to energy inputs used in processes such as the transportation of materials and the operation of machinery.

The national budget was formulated with an estimated crude oil price of US$65 per barrel, while international prices have exceeded US$100, which led to the implementation of fuel subsidies, the maintenance of the price of liquefied petroleum gas, LPG, and partial adjustments in other derivatives.

These provisions are part of a containment scheme aimed at mitigating the impact of international variations on domestic prices.

The transport of materials, the movement of equipment and the use of heavy machinery are among the processes that depend directly on fuel consumption, so these inputs are part of the operating cost structure of the construction sector.

According to the Central Bank, construction is an energy-intensive activity, particularly in transportation and equipment operation, in a context where the sector registered a cumulative contraction of -0.5% in 2025.
Data released by El Inmobiliario indicate that construction activity showed adjustments in its dynamics during the year, in an environment of variable costs and changing conditions.

The announced measures are framed within an international context of high volatility in oil prices, which has led to the application of mitigation mechanisms to reduce its impact on the economy, and construction is one of the key sectors.

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Solangel Valdez
Solangel Valdez
Journalist, photographer, and public relations specialist. Aspiring writer, reader, cook, and wanderer.
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