West Asia conflict hurts asphalting of Bengaluru roads as bitumen price up 50%

“Bitumen is the primary material used in road tarring. Since the war in Western Asia began, its supply has become increasingly difficult after just one shipment. The price of bitumen has risen by more than 50 per cent per tonne,” Kumar told indianexpress.com.

“We used to get a tonne of bitumen for Rs 45,000-46,000, but now the cost has increased to Rs 65,000-67,000. We will not be able to afford it and have informed GBA Commissioner Maheshwar Rao. He has promised to discuss the issue at the government level,” he said.

A contractor said that many road development and tarring work orders were issued after March 1. The bitumen price rose later.

According to the contractors, Mangalore Refinery and Petrochemicals Limited or Indian Oil Corporation supplies bitumen to Bengaluru. The supply has stopped since last week, and bitumen is being sold at a higher cost on the black market.
“We have no choice but to halt the work until the Government intervenes and solves the issue,” the contractor added.

The association, which met the GBA chief commissioner, has demanded a “star rate” as compensation. A star rate is a specially determined rate for work items not included in the original agreement. It is used to value variations or extra items based on current market rates and other factors.