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Bitumen Shortage Halts India's Highway Push

Financial Times Markets •
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India’s drive to lay 100 km of highway a day stalls as Gulf bitumen supplies dwindle after the Iran conflict.

Shipped tonnage to India fell from 32,000 t in March last year to 7,000 t this March, according to Kpler data. Prices for bitumen have spiked more than 50% since February, straining contractors such as Larsen & Toubro.

Smaller builders report receiving only two of ten scheduled truckloads, while state projects risk spilling into monsoon season. The National Highways Builders Federation sent two letters to the ministry demanding a comprehensive relief package.

In South Korea, the Sindo Peace Bridge in Incheon faces delays, and Italian contractors are urging contract adjustments amid rising material costs. The crisis exposes India’s reliance on Gulf imports for about 40% of its bitumen.