Business · India Bureau
Bitumen price surge derails road projects in Kerala's Kochi
Skyrocketing bitumen costs have disrupted infrastructure work in Kochi, with prices surging nearly 48 percent in six months. Local authorities are scrambling to find solutions as contractors struggle with mounting expenses.
LSN India ·
The price of bitumen has emerged as a major impediment to ongoing road construction and maintenance projects in Kochi, with costs climbing sharply from ₹10,093 to ₹14,915 per 156-kilogram barrel between March 5 and September 16 this year. The 48 percent spike has created significant financial strain on municipal infrastructure initiatives and left motorists facing extended project timelines and continued traffic disruptions across the city.
The Kochi Corporation, which oversees local road development schemes, is actively exploring administrative remedies to address the funding shortfall created by the volatile commodity prices. Officials are examining the feasibility of permitting supplementary financial estimates that would allow projects to absorb the additional costs without compromising work quality or scope.
Contractors engaged in local-body projects have intensified appeals for intervention from the state Finance department. They are seeking an official directive that would enable them to recover excess expenditures incurred due to bitumen price fluctuations, a practice that could establish a precedent for future infrastructure work in Kerala.
The surge reflects broader volatility in global crude oil markets, which directly influences bitumen pricing in India. Road construction agencies across South India have reported similar challenges, though the impact has been particularly acute in Kochi, where multiple concurrent projects have amplified the strain on municipal budgets and contractor finances.