Bitumen Price In India

Local factors are:

• Refineries

India’s major refineries are Indian Oil Corporation IOCL , Bharat Petroleum BPCL, and Hindustan Petroleum HPCL.

Each of them uses a different pricing formula and sets different prices for bitumen in India.

• Transportation Cost

The transportation cost of bitumen is related to the distance from refineries and the type of transport.

States far from refineries have higher bitumen price.

Bitumen is transported by road and rail.

Bitumen transportation costs on the road are based on fuel prices.

Rail transportation is cheaper but still related to the distance between the refinery and the location.  

• Climate Condition

During the monsoon (rainy) season (June-September) in India, road construction projects are few. Therefore, bitumen demand is lower, and the price of bitumen is decreased.

Meanwhile, heavy rain can increase bitumen transportation costs and the price of bitumen.

• State-Specific Taxes

Goods and Services Tax (GST) for bitumen is 18% across India.

Some states have different taxation values on petroleum products. For example, Value Added Tax (VAT) on transportation fuels is different in various states.