W Asia war hits UP roads: Bitumen price surge hampers asphalt laying

UP has sanctioned ₹34,468 crore for roads and bridges construction in the budget 2026-27. With new roads sanctioned annually and major proposals having already come from MLAs and MPs, work on these proposals has begun or is set to begin in May 2026.

The UP Public Works Department (PWD) maintains 10,214 km of state highways, 6,395 km of major district roads, 56,858 km of other district roads, and 193,581 km of village roads.

The article notes that price surges have forced contractors to delay projects in several states, including Himachal Pradesh, where bitumen costs have nearly doubled.

The UP Thekedar Kalyan Samiti (UPTKS) urged the PWD to restart its own bitumen stores and supply bitumen to contractors with ongoing works to prevent delays.

The Public Works Department (PWD) decided to compensate for the increased cost (price differential) of asphalt. A cabinet proposal has been drafted to provide price adjustment for abnormal bitumen price rises on short-term maintenance contracts, item-rate contracts, and EPC contracts of less than 18 months where no price adjustment mechanism exists. The proposed price adjustment would apply to works from April 1 to June 30, 2026 for contracts with bid dates before April 2026.

Geopolitical tensions in West Asia linked to the US-Iran war have slowed about 70% of ongoing road construction and repair works in Uttar Pradesh. Bitumen price has surged to around ₹89,859 per metric tonne (including GST), about 65% higher than February 2026.

The Ministry of Road Transport and Highways issued a circular to adjust prices to address abnormal increases in bitumen for EPC and HAM projects, with price escalation provisions. The circular notes that price adjustments may be provided for short-term maintenance contracts (STMC), item-rate contracts, and EPC contracts of less than 18 months, for contracts with bid dates before April 2026, covering the period April 1 to June 30, 2026.

Bitumen price was ₹53,150 per metric tonne (including GST) in February 2026, with reports of a roughly 65% increase since February due to disruptions in the global supply chain triggered by the US-Iran war.