Soaring asphalt prices are putting growing pressure on road construction projects across Germany.

The key driver is the sharp increase in bitumen costs — a crude oil–based binding agent essential for asphalt production — amid geopolitical tensions linked to the war in Iran and rising global energy prices.

With bitumen now costing nearly €700 ($813) per ton, production costs have doubled in a short time, disrupting long-term contracts negotiated at fixed prices.

Industry representatives warn that price hikes of 20-40% could make road building economically unviable, threatening smaller construction firms and delaying infrastructure projects nationwide.

The situation reflects broader risks facing the German economy, from volatile raw material markets to fragile global supply chains.