Rising Bitumen Prices Threaten Road Construction in Himachal Pradesh
Spike in bitumen prices likely to hit road construction in Himachal
Hindustan Times
Image: Hindustan Times
The ongoing conflict in West Asia has led to a sharp increase in bitumen and light diesel oil (LDO) prices, causing significant challenges for road contractors in Himachal Pradesh, India. With bitumen prices doubling from ₹43 to ₹86.60 per kg, the financial viability of ongoing projects under the Pradhan Mantri Gram Sadak Yojana (PMGSY) is at risk.
- 01Bitumen prices have doubled, impacting road construction costs.
- 02The rise in prices is attributed to global crude oil price hikes due to the West Asia conflict.
- 03Contractors are demanding government compensation to continue ongoing projects.
- 04Cost for road construction under PMGSY has significantly increased, with 3-metre-wide roads now costing ₹17.75 lakh per km.
- 05Public Works Department is seeking central government support to manage financial burdens.
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The recent surge in bitumen and light diesel oil (LDO) prices, driven by the ongoing conflict in West Asia, poses a serious threat to road construction projects in Himachal Pradesh, India. Bitumen prices have skyrocketed from ₹43 to ₹86.60 per kg, while LDO prices have increased by over 50%. This escalation has rendered ongoing projects under the Pradhan Mantri Gram Sadak Yojana (PMGSY) financially unviable for contractors. The Public Works Department (PWD) minister, Vikramaditya Singh, acknowledged the impact of global inflation on local construction costs and confirmed that the state has approached the central government for financial assistance to mitigate the situation. The cost of constructing 3-metre-wide roads has risen from ₹13.75 lakh to ₹17.75 lakh per km, while costs for 6-metre-wide roads have jumped from ₹27.50 lakh to ₹35.50 lakh per km. The PWD minister stated that the state may need to delay some infrastructure targets depending on the international situation but emphasized the importance of maintaining quality standards. Meanwhile, there has been a notable increase in coal demand as some eateries revert to traditional cooking methods amid the LPG crisis, although officials have assured that the supply of petroleum products and LPG remains stable in the state.
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The rise in bitumen prices is likely to delay road construction projects, affecting local infrastructure development and potentially leading to increased costs for commuters and taxpayers.
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