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The National Highways Authority of India (NHAI) is actively securing bitumen supplies to ensure uninterrupted road construction amid conflict in West Asia that threatens imports. India consumes nearly 9 million tonnes annually, with around one third traditionally sourced from abroad. NHAI is coordinating with domestic refiners including IOCL, BPCL, and HPCL to lock in supplies and manage price fluctuations. Officials are also considering increasing local production and diversifying imports to Southeast Asian countries to reduce dependency. Rising global prices and logistical challenges are key concerns for ongoing highway projects.
India's highway construction programmes, which plan to add nearly 10,000 km in the upcoming financial year, rely heavily on bitumen, a core material for road surfacing. Annual demand stands at roughly 9 million tonnes, of which about 35-36 percent is imported, primarily from West Asia. With the ongoing conflict in the region posing risks to supply continuity, the NHAI has intensified coordination with major domestic refiners, including Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL), to ensure steady availability of bitumen. Advertisement
Officials have indicated that discussions focus not only on volume but also on maintaining quality standards and managing price volatility. Bitumen in India typically trades between INR 40,000 and INR 60,000 per tonne, depending on grade, while international prices fluctuate around USD 400 USD 500 per tonne. Regular price revision mechanisms and advance planning are being considered to minimize disruption for ongoing and upcoming highway projects.
Industry experts note that import dependence exposes road construction to global geopolitical shifts. The Strait of Hormuz, a major shipping route for West Asian crude and bitumen, remains a point of vulnerability. To reduce risks, domestic refiners are being urged to scale up production where possible, while India is also exploring alternative import sources from Southeast Asian countries like Singapore.
Rising geopolitical tensions have already led to upward pressure on bitumen prices, impacting project cost estimates for developers. Ensuring timely delivery and consistent quality is critical, as any disruption could delay highway projects and increase overall expenditure. By proactively engaging with refiners and exploring multiple supply channels, NHAI aims to maintain the momentum of infrastructure development across the country.
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