:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies
http://TuEngr.com
ISSN 2228-9860
eISSN 1906-9642
CODEN: ITJEA8
FEATURE PEER-REVIEWED ARTICLE
Vol.17(2) (2026) |
Effects of Increased Oil Prices on the Thai Construction Industry
Bhattraradej B. Witchayangkoon, and Alif Samsey (Department of Civil Engineering, Thammasat School of Engineering, Thammasat University, Rangsit, Pathumtani, THAILAND).
Discipline: Construction Management.
doi: 10.14456/ITJEMAST.2026.12
Keywords: Oil price shock; Construction industry; Thailand; Housing demand; Supply chain disruption; Housing affordability; Cost transmission mechanism; Increased construction material costs; Increased logistic costs.
AbstractThis research looks into the effects that the increasing crude oil prices have on Thailand's construction sector. This study uses recent data (2025-2026). The findings show that rising oil prices affect the industry mainly in three ways. First, they directly raise the costs of construction materials. Second, they increase logistics and transportation costs. Third, they indirectly impact housing demand by lowering consumer purchasing power. Analyzing the Construction Material Price Index, it shows a 5.9% increase year-on-year, reaching 112.4 in April 2026. This is the highest in 44 months, with materials like asphalt seeing a 15.8% rise. Sectors that use a lot of energy, such as cement (25.92% energy intensity) and glass (22.26%), are under significant cost pressure. The research points out that small to medium contractors with fixed-price contracts are at the greatest risk of financial trouble, while larger developers are raising their prices by 4-10%. The study wraps up by stating that the construction industry is moving into a "New Cost Base" phase, which will have lasting effects on housing affordability, project feasibility, and industry consolidation.Paper ID: 17A2E
Cite this article:
Witchayangkoon, B.B. and Samsey, A. (2026). Effects of Increased Oil Prices on the Thai Construction Industry. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 17(2), 17A2E, 1-13. http://doi.org/10.14456/ITJEMAST.2026.12
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Other issues:
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