The price of light fuel oil has risen to the level it was at when Russia invaded Ukraine in the spring of 2022. INFRA ry proposes that, similarly to then, the government will take steps to ensure the continuity of construction machinery companies. The state can, with minimal expenditure, ensure a bridge over the worst cost shock for a large number of small and medium-sized construction companies at a time when they are needed to ensure a high level of domesticity in data center and energy investments.
According to Statistics Finland, the average price of light fuel oil increased by 45,9 percent in August 2026 compared to a year ago and by 9,2 percent from the previous month. Among fuels, its price increased the most.
The rapid price increase is challenging companies in the construction equipment industry, for which fuel, and light fuel oil in particular, is a significant cost factor. In long-term contracts, such a sharp and sudden increase in costs can even lead to work being done at a loss.
"This is no longer a matter of normal business risk, but of a sudden price shock that has not been contractually prepared for," says Emil Mäntylä, Chairman of the Board of INFRA ry.
Quick help is possible with existing models
INFRA raises two options to resolve the situation: a temporary reduction in the tax on fuel used in business operations or a fuel subsidy in the spring of 2022.
A tax rebate could be implemented along the lines of the model used in Sweden. The rebate would be targeted at companies whose fuel demand does not have the same price elasticity as consumers.
The fuel subsidy in use in spring 2022 targeted both diesel for transport companies and fuel oil used in construction machinery. The subsidy was paid for costs incurred during the three spring months and was applied for retrospectively.
"Working tools exist. Now we just need speed so that they are in use when they are most effective. There is work to be done in the infrastructure sector, but machinery contracting cannot be done at a loss for long. The most difficult position is for small companies, whose liquidity cannot withstand a prolonged cost shock. If companies fall out of the market, the effects will eventually be visible in the implementation of the work," CEO Paavo Syrjö continues.
The professional diesel prepared by the government, however, will not solve the current problem in the construction machinery industry, because construction machinery uses light fuel oil.
Finland needs the civil engineering sector to implement investments
Finland is facing major investments in industry, energy and other green transitions. Their implementation requires more than just investment decisions: earthworks, mass movement, foundation construction, road and field construction and other work performed with heavy machinery.
"If we want investments in Finland and for them to employ as many Finns as possible, we need the entire Finnish construction industry to be involved. SMEs, with their equipment and expertise, do a significant part of the work required by the investments," Paavo Syrjö reminds.
INFRA ry represents almost 1,500 entrepreneurs and companies in the construction industry. Member companies use approximately 20,000 machines.
More information:
Paavo Syrjö, CEO, INFRA ry, tel. +358 40 560 1803
Emil Mäntylä, Chairman of the Board, INFRA ry, tel. +358 40 508 1270