Highway Projects Granted Extended Fuel Cost Cover Till End-2026

The Ministry of Road Transport and Highways has extended cost compensation cover for bitumen and diesel to highway construction projects. The extension will apply to all projects executed through December 31, 2026, provided the bid due date was set before April 1, 2026.

The move is aimed at insulating highway contractors from the impact of volatile diesel prices, which have surged due to geopolitical tensions in West Asia. Rising fuel costs can significantly affect project economics and construction timelines.

This compensation mechanism allows contractors to recover additional expenses incurred due to fuel price fluctuations beyond agreed contract rates, ensuring project viability and on-time completion across the national highway network.