The ongoing conflict in Iran is beginning to push diesel prices significantly higher, and this is starting to impact industries across Australia. Because a large portion of the world’s oil supply moves through the Middle East, disruptions in the region can quickly affect global fuel prices.
Since the beginning of the conflict, diesel prices have risen sharply from around $1.60–$1.70 per litre to approximately $3.00 per litre. So far, the majority of companies across the transport and construction industries have responded by introducing temporary fuel levies to help cover the increased cost of freight and logistics.
However, if diesel prices remain elevated, these increases are likely to go beyond temporary levies. Diesel plays a major role in concrete sleeper manufacturing, from transporting cement, aggregates and steel reinforcement, to operating forklifts and production equipment. On top of that, concrete sleepers are heavy products that require significant transport to deliver across Queensland.
As fuel costs continue to rise, it is likely these pressures will eventually flow through to higher manufacturing and delivery costs for concrete sleepers.
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