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Rising Asphalt Prices: A New Challenge for Iran's Roads

Jun 22, 2026 June 22, 2026 4 min read 📰 Radio Farda
📋 Key Takeaway

The rising cost of asphalt in Iran has led to increased construction costs and poses a significant challenge to road projects, potentially resulting in delays and unsafe road conditions. Officials are exploring alternatives like cold recycling of asphalt and the use of concrete, but budget cuts and supply issues complicate the situation.

🔍 Quick Context Guide
💡 Bottom Line: Rising asphalt prices could delay critical infrastructure projects, affecting safety and economic growth.

👥 Key Players

Hussein Mirshafie QUOTED
Senior official at Iran Construction and Development of Transportation Infrastructure Company
""The sudden increase in asphalt prices...""
Farzad Dadkhah QUOTED
Deputy of road maintenance in Isfahan province
""The increase in asphalt prices has raised the cost of each kilometer...""
Kheirollah Khademi QUOTED
Deputy Minister of Roads and Urban Development
""It is necessary to convert another 16 to 17 thousand kilometers into freeways and highways...""
Iran Construction and Development of Transportation Infrastructure Company (شرکت ساخت و توسعه زیربناهای حمل و نقل ایران) ACTOR
Government organization
"Referenced as the organization involved in transportation infrastructure."

⚡ Actions

Hussein Mirshafie ANNOUNCE Iranian road construction projects
""The sudden increase in asphalt prices, up to twice the price of last year, has posed challenges for asphalt delivery.""
Confidence: 90%
Farzad Dadkhah IMPLEMENT asphalt recycling projects
""We have moved towards new asphalt types and also cold recycling of asphalt.""
Confidence: 90%
Iranian government REDUCE construction budget
""The Iranian government has reduced the country's construction budget in 2018...""
Confidence: 80%

📰 What Happened

Rising asphalt prices challenge road construction projects in Iran, risking safety and increasing costs.

  • Hussein Mirshafie announce Iranian road construction projects
  • Farzad Dadkhah implement asphalt recycling projects
  • Iranian government reduce construction budget

💡 Why It Matters

🇮🇷 For Iran: Because rising asphalt prices threaten road safety and increase construction costs.
🌍 Regional: Because poor infrastructure can lead to increased accidents and economic instability.
🌐 International: Because it highlights the impact of sanctions on Iran's infrastructure projects.

📚 Background

Rising asphalt prices could delay critical infrastructure projects, affecting safety and economic growth.

📝 Key Evidence

""The sudden increase in asphalt prices...""
→ Challenges in road construction due to rising costs.
""The increase in asphalt prices has raised the cost of each kilometer...""
→ Financial impact of rising asphalt prices on construction.
📡 Source: INDEPENDENT
📊 Confidence: 80%
Radio Farda is known for critical reporting on Iran.

These days, alongside the increase in the prices of various goods in Iran, the rising cost of asphalt has led to higher prices for each kilometer of asphalt. This situation poses a serious challenge to the implementation of road construction or repair projects in Iran. The ongoing news regarding the hoarding of consumer goods in hopes of selling them at inflated prices, coupled with the lack of adequate supply of materials like asphalt, has hindered road construction in Iran, resulting in increased construction costs. This incident could disrupt the process of road construction and reconstruction. Poor road conditions lead to low quality and safety. The last link in this defective chain could be an increase in road accidents and financial and human casualties. Hussein Mirshafie, a senior official at the Iran Construction and Development of Transportation Infrastructure Company, stated: "The sudden increase in asphalt prices, up to twice the price of last year, has posed challenges for asphalt delivery." With the rise in asphalt prices, the cost of asphalt has also increased. According to ISNA, Farzad Dadkhah, the deputy of road maintenance in Isfahan province, said: "The increase in asphalt prices has raised the cost of each kilometer of asphalt to 250 to 300 million tomans. In this regard, we have moved towards new asphalt types and also cold recycling of asphalt." Mr. Dadkhah emphasized the reason for using cold recycling of asphalt, stating that "by recycling worn-out asphalt, significant savings can be made in the road asphalt sector, and currently, we have plans to implement projects with cold asphalt recycling." This official mentioned that road quality is one of the factors exacerbating accidents and stressed that "accident-prone points in the country must be addressed." Currently, out of the 36,000 square kilometers designated as the country's flowing roads, 17,000 kilometers are highways and 2,400 kilometers are freeways. According to Kheirollah Khademi, Deputy Minister of Roads and Urban Development and CEO of the Iran Construction and Development of Transportation Infrastructure Company, "It is necessary to convert another 16 to 17 thousand kilometers into freeways and highways to meet the needs." The Iranian government has reduced the country's construction budget in 2018 and will use treasury documents to secure the approved budget. This action will not only halt many construction projects but could also lead to unsafe roads and increased road casualties. Now, with the increase in asphalt prices and consequently the rise in asphalt costs, we should expect delays in the promises of construction and inauguration of many projects across Iran. With cold asphalt recycling, one can only hope for the repair of damaged asphalt or the construction of a small part of ongoing projects. Despite the rising asphalt prices due to inadequate supply and according to the planned commodity exchange, and the increased final costs of asphalt and road construction, the question arises as to why, like some countries, concrete is not used for road construction in Iran? The high cost of asphalt and its lack of durability against cold and heat in various climatic conditions, along with the high costs of repairing and maintaining asphalt roads, have led some countries to prefer concrete over asphalt for road construction. For each kilometer of main road, 150 tons of asphalt is needed, which has become very expensive these days. In 2014, the Parliament's Civil Commission agreed to use concrete instead of asphalt for road construction. The Ministry of Roads and Urban Development also began this process, but it has only been implemented in very limited projects, such as part of the Tehran-North freeway, which continues to have its opening date postponed. Cement production in Iran continues to increase. On the other hand, exporting surplus cement from Iran is not easily feasible, and due to U.S. sanctions, there are no international buyers for this surplus production. Therefore, the potential for using cement in road construction instead of asphalt can be increased. The most important advantage of concrete pavement in road construction is that maintenance costs for roads are reduced, and it is more resistant to climate changes.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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