Construction costs stabilise as diesel prices drop 6.5%

Fuel-intensive areas like excavation saw cost reductions after diesel prices fell, though diesel remains well above levels from earlier this year.

Reviewed by Rakai 30 June 2026

Construction cost growth has stabilised following a drop in diesel prices, with fuel declining 6.5% according to the June QV CostBuilder update.

The diesel price reduction drove down costs in fuel-intensive construction areas, with excavation falling 1.5%, site preparation down 0.4% and piling costs dropping 0.3%. Concrete costs also declined 0.3%.

Despite the recent fall, diesel prices are still more than 50% above where they started the year. QV CostBuilder quantity surveyor Martin Bisset said project planners should continue to allow for cost movement as volatility remains.