CNI Urges Immediate Address of Contractors’ Concerns
28th May 2026
The ongoing conflict in the Middle East and the resulting surge in fuel prices have had a direct impact on Nepal’s economy. Prior to the escalation of the conflict (February 15), diesel was priced at NPR 139 per litre; it has now risen to NPR 225 per litre. Similarly, the price of bitumen has increased from NPR 75 per kg to NPR 155 per kg.
The Confederation of Nepalese Industries (CNI) has expressed concern over information provided by the Federation of Contractors’ Associations of Nepal (FCAN) indicating that the sharp rise in the prices of diesel, kerosene, bitumen, other construction materials, and transportation costs has pushed the construction industry to the brink of a standstill. According to the Federation, contractors have already incurred losses exceeding NPR 10 billion during this period of price escalation.
As disruptions to construction projects could also affect other industries directly linked to the sector, CNI urges all concerned stakeholders to take appropriate measures to address the challenges faced by contractors. Timely intervention is essential to ease the financial and psychological burden on construction entrepreneurs and to help maintain momentum in the overall economy.