# Fuel and bitumen cost relief extended for highway contractors

> MoRTH extends diesel and bitumen price compensation until December 31 to support highway projects hit by global oil price spikes.
- Title: Fuel and bitumen cost relief extended for highway contractors
- Summary: MoRTH extends diesel and bitumen price compensation until December 31 to support highway projects hit by global oil price spikes. The Indian government…
- Keywords: moirth, diesel, bitumen, highway contractors, price escalation, national highway projects, west asia conflict, business, money, news, Fuel, cost
- Source: Financialexpress — https://financialexpress.com/business/infrastructure/fuel-bitumen-cost-relief-for-highway-contractors-extended/4358801
- Author: FE Bureau
- Published: 2026-10-11T16:51:11+00:00
- Read time: 1 min
- Topics: moirth, diesel, bitumen, highway contractors, price escalation, national highway projects, west asia conflict, business, money, news
## MoRTH extends relief measures
The Ministry of Road Transport and Highways extended bulk diesel and bitumen price escalation compensation until December 31, 2026.
## Price escalations impact
Bulk diesel prices rose from Rs 87.67 to Rs 153.57 per litre, while bitumen prices increased from Rs 48,900 to Rs 84,120 per tonne.
## Relief covers specific projects
The compensation applies to highway projects with bids due before April 1, 2026, and work executed between October 1, 2025, and December 31, 2026.
## Mechanism details
The bitumen mechanism covers projects under EPC, hybrid annuity model, and performance-based maintenance contracts with monthly payments instead of quarterly.
## Purpose of relief
The extension aims to prevent cost pressures from disrupting national highway construction and maintenance projects affected by elevated global oil prices.
## Key takeaway

The Indian government extended cost escalation compensation for highway contractors through December 31, 2026, to offset elevated diesel and bitumen prices caused by West Asia conflict.