Rising bitumen prices have thrown road repair projects around Chennai into chaos,causing big headaches for drivers . Costs surged,fueled by the conflict in West Asia and rising crude oil prices, forcing agencies like Greater Chennai Corporation (GCC) to cancel tenders,leaving many roadworks in limbo.
Recent data shows bitumen prices skyrocketing past months. Bitumen VG 30, for smaller streets, leapt from ₹47,852 per tonne in December 2025 to ₹76,852 by June 2026. Meanwhile,VG 40, needed for bus routes,saw prices jump from ₹50,342 to ₹84,772 per tonne. Light diesel oil (LDO),key for heating production plants,soared from ₹59,464 per kilolitre to ₹1,00,444.
These hikes have left GCC contractors struggling to finish projects,with 26 roads milled but not relaid. Residents frustrated. “When milling is done and relaying isn't completed soon, road users,especially two-wheeler riders,find it hard to use these stretches,” said B. Narayanan,resident of Sholinganallur. He warns incomplete roads increase accident risks.
Despite GCC pushing contractors to complete work, many hesitate,fearing financial disaster. Situation worsened by delays on 140 more roads needing relaying after milling. Civic officials anxiously await state government decision on July 1 to potentially tackle rising costs.
Contractors also report slowdowns on state highway projects. A contractor noted the extraordinary price hikes, saying,“Luckily,there were no heavy rains requiring bitumen.” Current contract price adjustments only kick in if work takes over 12 months,adding complexity.
To manage costs,a "pass through" mechanism is used for bitumen,steel,cement . This lets agencies like National Highways Authority of India (NHAI) and Central Public Works Department (CPWD) absorb extra costs during sharp price hikes . Recently,the Centre issued a circular for ongoing NHAI projects to cover bitumen price differences after April. But contractors still face challenges with upfront payments.
“We didn’t want projects to slow down or stop as restarting large projects is tough given investments in men and machinery,” official said, underscoring urgency. Contractors and agencies now hope bitumen prices drop,with crude oil rates back to pre-war levels. What will state government decide come July 1…?
