Relationship Between Fuel Price Stability and Price of Selected Building Materials in Minna.

Abstract

This research examines the relationship between fuel price stability and price of building materials. Previous studies revealed that cost of construction projects have increased due to increase in price of petroleum products. This also caused the increase and fluctuation of the price of building materials thereby leading to cost overrun and project abandonment. To address this problem, this research examined the relationship between stable fuel price and cost of selected building materials in Minna. Data were gathered from the primary source which involves market survey. The selected building materials were six in number: high tensile reinforcement bar (12mm and 16mm diameter), timbers (2‖x4‖, 2‖x6‖ and 1‖x12‖ sizes) and 50kg cement. Bar and line graph was used to present the trend in price of materials between periods of unstable and stable fuel price. Correlation analysis was used to determine the relationship between prices of selected building materials during unstable and stable fuel price periods. T-test was used to determine the difference between price of building materials when price of petrol was unstable and when it was stable. The prices of 12mm bar, 2‖ x 4‖, 2‖ x 6‖ and 1‖ x 12‖ timbers showed significant difference; while prices of 16mm bar and cement showed non-significant difference between the periods under review. It was thus concluded that stability of price of petroleum does not guarantee stability of the price of the selected building materials. The need for further research to examine the influence of interest rate and exchange rate on price of building materials was therefore emphasized.