Some road construction projects in Latvia may not be implemented due to the sharp increase in the cost of bitumen, a key material used in road asphalt production, representatives of Latvijas Valsts Ceļi (LVC) have warned.
The company explained that the rise in oil prices triggered by the conflict between the United States and Iran directly affects the price of bitumen. According to LVC, the price of bitumen from manufacturers has increased rapidly, rising by about 25% within just a few days, with the possibility of further increases.
LVC said it will extend submission deadlines for ongoing state road construction tenders, allowing contractors to adjust their bids in line with market developments. After that, decisions on procurement results will depend on the final construction costs.
The company also noted that some projects may ultimately not be implemented, and existing contracts may need to be indexed if the situation in the bitumen market does not improve or deteriorates further.
Earlier reports indicated that oil prices have continued to climb, reaching their highest levels since 2022.
The price of Brent crude oil has increased by about 15% to 103.54 US dollars per barrel, while WTI crude oil has risen by 15% to 107.35 dollars per barrel.
Economists warn that consumers and businesses worldwide may face higher fuel prices for weeks or even months, even if the conflict ends quickly. Oil suppliers could struggle to restore full operations due to damaged facilities, disrupted logistics networks and increased risks associated with transporting energy resources.
Established in 2004, Latvijas Valsts Ceļi is a state-owned company responsible for managing Latvia’s national road network, administering funding for state roads, and organising procurement for road construction. The company oversees more than 20,000 kilometres of state roads across the country.
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