Bitumen deficit bridged, price issue persists

By Sohail Khan 31 August 2026, 11:49 am

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Business News›Industry›Transportation›Roadways›Bitumen deficit bridged, but price problem persists; India's roads set to face a real test this winter

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Bitumen deficit bridged, but price problem persists; India's roads set to face a real test this winter
Synopsis

As prices of bitumen continue to be on the higher side, road construction companies are watching the winter construction season closely. Even if supply remains comfortable, the prevailing price differential from pre-conflict levels is likely to keep pressure on project economics.

Bitumen deficit bridged, but price problem persists; India's roads will face a real test this winter — Road construction activity typically slows during the monsoon as the laying of bituminous layers becomes difficult.

India’s bitumen supply situation has improved after a sharp squeeze during the peak of the West Asia crisis, but prices remain substantially above pre-conflict levels, raising concerns over the cost of road and highway projects, The on August 31.

The availability of the key road-building material has improved with increased domestic output and higher imports of Venezuelan crude. However, the shift in crude sourcing has not translated into a return to earlier price levels, ToI's report (by Dipak K Dash) said.

Russian crude supplies to India, which continued during the crisis, offered little support because the oil is largely sweet crude and is not well suited to producing high-quality bitumen. Venezuelan crude, on the other hand, has a higher bitumen yield but contains more sulphur, making it more expensive to process.

Officials and industry participants expect some further moderation in prices but do not foresee a return to the levels seen before the conflict. This could keep construction expenses elevated for road-owning agencies and developers.

The higher input costs could also require the government to continue compensating contractors for ongoing projects and factor in higher costs while setting estimates for projects that are yet to be awarded.

Also read | Govt to hire EIL for third-party quality checks on 5,000 km of highways and expressways

For now, however, availability is not emerging as a major constraint. Road construction activity typically slows during the monsoon as the laying of bituminous layers becomes difficult.

The bigger test will come between October and February, when construction activity gathers pace and agencies seek to accelerate work to meet annual road-building targets, ToI's report said. Higher seasonal demand during this period could put renewed pressure on supplies and prices, it added.

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