Sharp rise in asphalt costs strains ongoing public works

Recent developments in the energy market and geopolitical tensions have led to a rapid increase in the cost of key materials used in road construction and other engineering works.

Illustrating the situation, data posted by the General Secretariat of Commerce show that refinery prices for asphalt rose by approximately 34% within a single week. Specifically, prices increased from €381.64 per ton on 28 February 2026 to €511.34 per ton on 7 March 2026.

Asphalt is a core material for roadworks and other technical constructions. According to industry representatives, the sharp rise in costs places significant financial pressure on contractors, as contract prices for public works projects were calculated based on entirely different market conditions.

The letter sent to the government highlights that this development substantially disrupts the economic balance of contracts and increases the risk of delays or difficulties in the execution of public works.

Previous Government Intervention

Industry associations note that during a previous period of rising prices, the government implemented an extraordinary measure. Specifically, under Article 152 of Law 4938/2022, contractors were allowed, by exception, to calculate the value of certain raw materials on a retrospective basis for public works contracts.

Following this, Joint Ministerial Decision 275234/05.09.2022 established the method for calculating asphalt value based on daily refinery prices at the time the asphalt mix was incorporated into the project. This regulation provided that the budgeted cost of asphalt would be deducted from the relevant contract item, and the contractor would be paid the actual cost of the material used.

Request for a New Extraordinary Measure

Given current conditions, industry representatives are calling for the immediate enactment of a similar regulation to address the latest price surge. According to PEDMEDE, PESEDE, and SATE, the continuing increase in asphalt and related materials significantly burdens construction companies and creates risks for the smooth execution of contracts and timely completion of critical infrastructure.

In this context, the following measures are proposed:

• Retrospective calculation of the value of asphalt and related materials based on official price data at the time they are incorporated into the project.
• Preparation of a special protocol for calculating expenses and submission of the required supporting documentation.
• Deduction of the budgeted material cost from contract items and payment of the actual material cost to the contractor.
• Application of the regulation to ongoing public works contracts for a specified period.

At the same time, contractors note that they are already facing significant pressure from rising fuel costs, an issue they plan to address in a future submission to the government.