Bitumen demand surges 47% in August as road construction activity picks up

Bitumen demand surged 47% in August after decreasing in April-July as rains eased, signalling a recovery in road construction.

Consumption increased to 0.42 million metric tonnes (MMT) in August from 0.29 MMT a year earlier, according to petroleum and natural gas ministry data. Imports of bitumen jumped 49% during the month, with about a third of the country's total consumption met through overseas purchases.

During April-July, consumption had declined 2.3%. The turnaround began in July with 12.2% growth, accelerating sharply in August.


The decline in June was "primarily on account of low road construction activities in major states like Maharashtra, Rajasthan and Uttar Pradesh. Rains dampened the bitumen demand", the ministry said in a previous report.

Bitumen is consumed almost entirely in road building, and the July-September quarter is seasonally weak as rains hamper construction. Consumption rebounds thereafter, peaking in March, the final month of the financial year, when contractors rush to meet targets.

In July-September 2024, bitumen consumption was about 1.1 MMT-equivalent to the March 2025 volume. In the same quarter of 2022, consumption was even lower at about 1 MMT. By contrast, July-September 2023 saw consumption of around 1.5 MMT, likely due to a surge in road-building activity ahead of the April-May 2024 general election. Annual bitumen use hit a decade-high in 2023-24.

Bitumen accounts for about 3.5% of the total volume of refined products consumed in the country.