Effects of Fuel Price Increase in the Construction Industry
Foreseeing a domino effect of global prices in different industries

The recent invasion of Russia over Ukraine is causing global prices to soar high as Russia is the third biggest producer of oil in the world and accounts for 40% of natural gas imports in Europe.

According to The Irish Times, oil briefly reached its highest level since 2008 on Monday, $139 a barrel, which has translated into petrol and diesel prices at some filling stations passing €2 a litre. 

Before the war, there were already predictions of price increases in fuel and gas but the war has put massive pressure on the market causing it to soar beyond records in an almost vertical line. 

This global market change will have a domino effect on almost everything in the market as trade, manufacturing, and transport are all dependent on fuel. 

The construction industry will not be exempted from these price increases as construction materials such as plastic and metal consume a large amount of gas and oil during production. Likewise, transportation of these materials and other machines and equipment on-site will need fuel to run.

Several companies have already issued notices right after the global news broke out to manage consumer expectations and allow them to prepare for the next months.

SP Group, a leading manufacturer and supplier of temporary protection in Ireland and the UK, released its statement last 16th March to review its carriage and freight costs. The company aims to give its customers the best price possible amid the changes in the market.

If you have an account with SP Group or would like to know if we can supply your needed materials at a more affordable cost in the market, call +44 28 9442 8611 or email hello@s-pgroup.com.