Archive · 11 Oct 2026
Government Extends Fuel and Bitumen Relief for Highway Contractors
The government has extended help for companies building and maintaining national highways.
These companies have faced much higher prices for diesel and bitumen, a material used to build roads.
The ministry says bulk diesel now costs Rs 153.57 a litre, compared with about Rs 87.67 before the West Asia war began on March 1.
Bitumen has also become more expensive.
The extended rules let eligible contractors receive compensation for some of these higher costs.
The rules cover certain projects whose bids were due before April 1, 2026.
The bitumen measure applies to work done from April through December 2026.
Eligible payments are made monthly to help contractors manage their cash needs.
The Ministry of Road Transport and Highways extended compensation measures for bulk diesel and bitumen costs through December 31, 2026.
Bulk diesel prices rose from about Rs 87.67 a litre before the West Asia war began on March 1 to Rs 153.57.
Bitumen prices increased from Rs 48,900 per tonne in early February to Rs 84,120 per tonne.
The extensions apply to eligible projects with bid due dates before April 1, 2026; bitumen relief covers work from April 1 to December 31, 2026.
Eligible work can include EPC, HAM and performance-based maintenance projects, with monthly payments intended to ease contractors’ working-capital pressures.
- Who
- The Ministry of Road Transport and Highways and eligible highway contractors.
- What
- The ministry extended cost-compensation mechanisms for bulk diesel and bitumen.
- When
- The extensions run through December 31, 2026; the measures cover specified work periods.
- Where
- National highway projects in India.
- Why
- To help prevent high fuel and bitumen costs from disrupting highway construction and maintenance.
- Extension deadline
- December 31, 2026
- Bulk diesel price before the war
- About Rs 87.67 a litre
- Current bulk diesel price stated
- Rs 153.57 a litre
- Bitumen price in early February
- Rs 48,900 per tonne
- Current bitumen price stated
- Rs 84,120 per tonne
- Bitumen work period covered
- April 1 to December 31, 2026
- Project eligibility
- Bid due date must have been before April 1, 2026
- Payment cycle
- Monthly payments for eligible work, replacing the earlier quarterly cycle