A road project under construction in Khánh Hoà Province. — VNA/VNS Photo Công Thử

HÀ NỘI — The Ministry of Construction has urged local authorities to take urgent measures to manage construction costs and prevent speculation after a sharp increase in fuel prices triggered a surge in prices for building materials.

According to the ministry’s report, after a period of stability in 2025 and the first two months of 2026, fuel prices, particularly for diesếl, jumped significantly in March, pushing up costs across a range of construction materials due to higher production and transportation expenses.

As of March 31, cement prices had increased by more than 7 per cent from February levels, while steel rose over 2 per cent and tiles nearly 5 per cent. Sand, stone and bricks went up by between 13.5 per cent and 23.3 per cent. Asphalt recorded the steepest increase, surging by nearly 32 per cent.

The ministry warned that construction material prices are likely to continue rising in the near term, adding pressure on project costs, especially for key transport infrastructure.

According to the ministry, overall construction estimates have risen between 1.9 per cent and 8.1 per cent compared with February.

Under a scenario in which fuel prices double from February levels, the ministry said construction costs for transport projects could rise by nearly 16 per cent, while industrial projects would be the least affected, with increases of about 4 per cent.

There are currently 44 major projects worth a total of VNĐ569 trillion (roughly US$22 billion), with about VNĐ413 trillion allocated to construction.

If fuel prices were to double, construction costs for key transport projects alone could rise by an estimated VNĐ42.3 trillion, placing significant pressure on the State budget, the ministry said.

Citing the risk of prolonged geopolitical tensions in the Middle East affecting fuel prices, the ministry called on provincial authorities to prioritise critical infrastructure projects and ensure proper management and timely updates of construction material prices in line with market conditions.

The ministry also asked that oversight of fuel and construction material businesses be enhanced to prevent hoarding, speculation and price manipulation, while tightening control over mineral extraction output.

Project investors were urged to closely monitor costs and assess the impact of price increases while working with contractors to address emerging issues and ensure sufficient supply of materials to avoid construction disruptions. — BIZHUB/VNS