The impact of the US-Israel-Iran war, which is now seeing a temporary pause, is no longer confined to oil markets or geopolitics, it is beginning to show up on roads across the world, including India.
The conflict has disrupted crude supplies and shipping routes, pushing up the cost and availability of petroleum products, including bitumen, the key material used to build and repair roads. Since bitumen is directly derived from crude oil, even small shocks in global supply chains quickly translate into sharp price hikes and shortages. In recent weeks, prices have surged by 20–30 per cent in several regions, with supplies turning irregular as logistics and refining costs rise.
For India, this disruption is playing out in very tangible ways, from delayed highway construction to slower pothole repairs just ahead of the monsoon. Contractors across cities and states are either pausing work or scaling it down because fixed-cost contracts leave little room to absorb sudden spikes in input costs. Road projects worth hundreds or even thousands of crores are seeing delays, while maintenance work like patching potholes, usually done on tight budgets, is being deferred or done poorly. In some cases, roadworks have already stalled and project costs have risen by 5–8 per cent, underscoring how a distant geopolitical conflict is now directly affecting everyday commuting and infrastructure on the ground.
What Is Bitumen And What Is It Used For?
Bitumen is a thick, sticky, black substance that comes from refining crude oil—it’s essentially what’s left behind after lighter fuels like petrol and diesel are extracted. While it may not be as well-known as other petroleum products, it plays a crucial role in infrastructure. Its unique properties, being waterproof, highly adhesive, and durable, make it ideal for binding materials together. When heated and mixed with stone and sand, it forms asphalt, the smooth, flexible surface most of us drive on every day.
In practical terms, bitumen is the backbone of road construction and maintenance. It is used to lay new highways, resurface worn-out roads, and fill potholes, especially in countries like India where asphalt roads are the norm. Beyond roads, it also finds use in waterproofing roofs, sealing cracks, and even in airport runways. Because it is so central to both large-scale highway projects and routine repairs, any disruption in its supply or price doesn’t just affect construction timelines, it directly impacts the quality of roads and the daily commute of millions.
How The US-Iran War Has Hit India’s Bitumen Supply
India imports over 95–99 per cent of its bitumen from West Asia. When that region is unstable, India’s supply is immediately affected. The conflict has hit key shipping routes like the Strait of Hormuz, which still remains blocked and is not fully open. Some ships are being rerouted or delayed, leading to less supply reaching India. This has also led to a hike in freight costs.
With oil prices becoming volatile during the war, bitumen prices followed. According to reports, prices jumped sharply, in some places going from Rs Rs 45,000 to Rs 65,000 per tonne. Overall, bitumen prices in India have risen up to 40–50 per cent in recent months.
Which India Projects Could Be Delayed Due To Bitumen Crisis?
According to The Indian Express, projecs like Barapullah Phase III elevated corridor in Delhi have slowed down due to bitumen supply crisis. A PWD official associated with the Barapullah Phase III project told The Indian Express that bitumen-related work had nearly come to a halt earlier. While the situation has improved somewhat, a steady supply is still lacking. Bitumen is ordered as per requirements, but due to the price surge and shortage, deliveries remain irregular, arriving only once or twice a week, the official said.
In Bengaluru, roadworks worth nearly Rs 1,500 crore were slowing down, according to a Times of India report as bitumen became both costlier and harder to source. Supply disruptions from key hubs like Mangaluru added to the uncertainty, leaving projects in limbo just weeks before the monsoon. The result is a worrying scenario where incomplete roadworks and delayed resurfacing could translate into worsening potholes, traffic snarls, and a tougher commute for residents in the coming months.
Meanwhile, the NHAI is also executing thousands of km of highways under the Bharatmala Pariyojana. These include expressways, economic corridors, and border and coastal roads. These projects, with a supply crunch in bitumen, could also be at the risk of facing delays.
What is playing out is not just a Delhi or Bengaluru problem, but a wider global supply chain shock with very local consequences. The West Asia conflict has disrupted oil flows, which in turn has made bitumen both costlier and harder to access, leaving contractors struggling to keep up with projects under fixed budgets. The result is a cascading effect – slower highway construction, delayed roadworks, and patchy pothole repairs – bringing infrastructure activity to a crawl.
