The government has reassured highway construction companies that the availability of essential raw materials like bitumen, cement, and diesel will not be affected despite logistical challenges related to the US-Iran conflict. Officials from the National Highways Authority of India held discussions with the National Highways Builders Federation following concerns raised by contractors regarding delays in material deliveries due to disruptions in truck movements and ship offloading.
Contractors have expressed worries about potential delays impacting project schedules and escalating costs, leading some to seek force majeure clauses in their contracts. These clauses provide relief in extraordinary circumstances, a measure being explored by the contractors.
As bitumen prices surged by approximately Rs 2,000 per tonne, contractors are particularly concerned about their profit margins. Industry representatives have also cautioned that any rise in diesel costs could result in increased prices for cement and steel due to the influence of fuel on manufacturing and transportation expenses, although diesel prices have not yet seen an increase.
Government sources have stated that there are no immediate plans to raise petrol and diesel prices, citing an improvement in India’s energy reserves and a more stable situation. The government’s confidence in managing fuel supplies has grown with the enhancement of the country’s energy stock position, coupled with efforts to diversify crude oil imports to reduce reliance on vulnerable supply routes.
India has notably increased its crude oil imports from sources beyond the Strait of Hormuz, with the share of imports from non-vulnerable routes rising from 60% to around 70%. State-run oil marketing companies are expected to absorb the current impact, keeping fuel prices stable. Reports suggest that these companies may experience reduced profits due to the surge in global oil prices.
