Department of Public Works and Highways (DPWH) Secretary Vince Dizon said the recent surge in global oil prices could significantly affect the cost of infrastructure projects, particularly those reliant on heavy equipment and construction materials.
In an interview on DZRH’s Dos Por Dos, Dizon explained that many government infrastructure projects—including roads, bridges, and other public works—depend heavily on fuel, especially for operating heavy machinery used in construction.
“Ang atin pong mga proyekto na kailangang matapos; mga kalye, mga tulay, at iba pang infrastructure, marami diyan ay dependent sa fuel lalo na ang heavy equipment,” Dizon said.
The DPWH chief noted that higher fuel prices can also trigger increases in the cost of key construction materials, including steel, cement, and asphalt, which could affect project budgets.
Global oil prices have reportedly reached around $120 per barrel, with diesel prices also rising sharply in recent days.
Despite the potential cost pressures, Dizon assured that the government has mechanisms in place to address such situations. He said contracts include price escalation provisions that allow adjustments when unexpected increases in fuel or material costs occur.
“Pwedeng mag-adjust ng presyo o magkaroon ng variation order kapag iniimplement na ang mga bagong project ngayong 2026,” he said.
Dizon added that even ongoing infrastructure projects may be granted variation orders to accommodate cost adjustments caused by unforeseen circumstances, stressing that such measures must be applied properly and not abused.
He also acknowledged that speculation in global markets—particularly amid tensions and conflict in the Middle East—has contributed to rising prices of construction supplies.
Still, Dizon emphasized that infrastructure works across the country will continue.
“Tuloy-tuloy pa naman po tayo. In fact, yan nga po yung kabilin-bilinan ni Pangulo, yung kailangan lalo na habang nagkakagulo sa Middle East, kailangan paigtingin pa natin yung infrastructure program natin,” he said.
According to the DPWH secretary, President Ferdinand “Bongbong” Marcos Jr. has instructed government agencies to further intensify infrastructure development despite global economic uncertainties.
Dizon made the remarks while conducting inspections of road works along the Maharlika Highway in Eastern Visayas, including sections between Catarman in Northern Samar and Tacloban City. He said construction activities in the area are ongoing and have already improved travel time along some segments of the highway.
He added that the government aims to ensure smoother travel along major routes before the expected surge of travelers during the Holy Week break.
Meanwhile, the DPWH continues to process payments to contractors for completed project milestones, though Dizon noted that disbursements depend on the release of cash authority from the Department of Budget and Management.
As of the first quarter of the year, he said less than half of the payments for some projects have been released, but additional funds are expected to arrive soon.=
“Ngayon pong first quarter, nasa 50% pa lang po dahil na hinihintay pa po natin yung cash galing sa DBM. Halos wala pang 50% ang ating nababayaran. Pero ngayon meron na hong dumating ulit kahapon, meron na tayong in-expect ulit this week.”
Once funds are received and project accomplishments are verified, Dizon assured that payments to contractors will proceed.
“So basta po pagpasok ng pondo galing sa DBM, basta po tama yung physical accomplishment ng proyekto, eh tuloy-tuloy po ang pagbabayad natin.”
