West Asia war raises bitumen costs, slows Barapullah III work in Delhi

The war in West Asia has driven up bitumen prices, slowing work on key road projects in Delhi, including the Barapullah Phase III elevated corridor. Public Works Department officials say supplies are intermittent due to shortages and cost hikes over the past month. Though the war has ended, its effects are expected to linger for months.

Road works under Delhi's Public Works Department (PWD), including repairs, new builds and the Barapullah Phase III elevated corridor, have slowed over the past month due to higher prices of petroleum products like bitumen, triggered by the West Asia war, PWD officials said.

The 3.5-km Barapullah Phase III extension of Phases I and II is 90% complete, with a revised June deadline. Officials noted intermittent supplies: "We received 20 tonnes yesterday, used today. Fifteen days ago, work stopped due to non-availability," one said on the project. Without regular bitumen, the deadline risks slipping.

Other affected works include strengthening 153 stretches over 400 km and repairing 128 stretches, with only 60 km done by the March 31 deadline. PWD has proposed extending it to July 31, pending Cabinet approval. Stretches like Bipin Chadrapal Marg to CR Park and Mathura Road are included.

Contractor Sudeer Nimesh, working in Trans-Yamuna areas like Sonia Vihar, said 80% of work has slowed, missing the March 31 target. Bitumen prices rose from Rs 40 per kg to Rs 65 since March. A senior PWD official expects resolution in three-four months, as "the war is over but its impact will linger." The project's cost has escalated from Rs 1,260.63 crore to Rs 1,635.03 crore, with further rises possible.

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Dramatic illustration of fiery oil tanker attack in Strait of Hormuz driving Brent crude prices over $100, with naval response, reserve releases, and India inflation impacts.
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West Asia conflict surges oil prices past $100 per barrel

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Brent crude oil prices have exceeded $100 a barrel amid Iranian attacks on commercial shipping and disruptions in the Strait of Hormuz. The International Energy Agency and the United States are releasing oil reserves to counter supply concerns. In India, the crisis is fueling inflation risks, higher agricultural input costs, and trade disruptions.

The West Asia war has disrupted supply chains, causing Nestlé India to face packaging shortages and a stockpile of Maggi noodles at one production unit. Bisleri has raised its 1-litre bottle price from Rs 18 to Rs 20. Automakers including Maruti Suzuki plan price hikes for small cars amid rising costs.

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Building on earlier concerns over GDP growth projections, the escalating West Asia war is pressuring Indian equity markets and disrupting footwear and textile sectors through supply shortages and cost spikes. Prashant Jain of 3P Investment Managers views the impact as marginal and transient, while industry reports show input costs up 10-50%.

Oil prices peaked above $114 per barrel on March 9 as the Iran war intensified, building on yesterday's surge past $110. Indian markets plunged amid fuel cost fears, while Asian governments rolled out measures to shield consumers from spiking prices.

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Escalation of conflict between Iran, the United States, and Israel has led Iran to order the closure of the Strait of Hormuz, halting tanker traffic and driving global oil prices above US$80 per barrel. The effects extend to Europe, which is now reconsidering plans to end Russian gas imports, while Indonesia pushes for de-escalation via the D-8 organization and assures stable fuel supplies.

Following earlier diplomatic outreach, India is ramping up energy security efforts in the Gulf during a two-week ceasefire in the US-Israel-Iran conflict. Petroleum Minister Hardeep Singh Puri visits Qatar on April 9-10, and External Affairs Minister S Jaishankar heads to the UAE on April 11-12, to secure oil and gas supplies and evaluate conflict impacts.

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Oil prices have surged past $90 a barrel a week after the US and Israel launched major attacks on Iran, escalating into a Middle East war. The conflict has stranded oil shipments in the Persian Gulf and damaged key facilities, disrupting supplies. Consumers globally face higher gasoline and diesel costs as a result.

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