Hertfordshire County Council is reviewing its highways supply and procurement strategy as rising global oil prices and international instability place increasing pressure on construction material costs and infrastructure supply chains.

The authority has confirmed it is closely monitoring the potential impact of escalating geopolitical tensions involving Iran, with concerns growing across the highways sector over fuel prices, asphalt production and wider construction material availability.

Council Introduces Precautionary Material Purchasing Measures

In response to mounting uncertainty in global markets, Hertfordshire County Council said it has already implemented precautionary measures to protect ongoing highways operations and maintenance programmes.

These measures include advance bulk purchasing of essential highway construction materials in an effort to reduce exposure to future supply disruption and escalating costs.

The authority said highways officers are continuing to assess market conditions while working to maintain continuity across planned works programmes.

Rising Oil Prices Trigger Infrastructure Sector Concerns

The issue was raised during a recent full council meeting amid growing concern over how rising oil prices could affect road maintenance budgets and infrastructure delivery across the county.

The highways sector remains particularly vulnerable to fluctuations in oil and fuel costs due to the dependency of products such as asphalt and bitumen on petroleum-based manufacturing processes.

Industry concerns have intensified following recent instability in global energy markets, increasing pressure on local authority budgets already affected by inflation and rising operational costs.

Key Highway Construction Materials Under Pressure

Alongside asphalt supply concerns, the council has identified a range of other materials potentially vulnerable to cost escalation or supply chain disruption, including:

• Steel girders
• Safety barriers and guard rails
• Street lighting columns
• General highway construction products

The authority acknowledged that while there has been no immediate impact on current schemes, prolonged instability could eventually affect future project delivery and programme planning.

Growing Challenges for Local Highway Authorities

The situation reflects wider pressures facing highway authorities across the UK as councils continue managing ageing infrastructure within constrained financial environments.

Rising material costs, inflation and ongoing supply chain uncertainty are increasingly forcing local authorities to reassess procurement strategies, delivery priorities and long-term asset management approaches.

Many councils are now adopting preventative maintenance strategies and forward purchasing models in an attempt to improve resilience and reduce exposure to volatile market conditions.

Supply Chain Resilience Becoming Increasingly Important

The highways and civil engineering sectors have experienced repeated supply chain disruption in recent years, with energy prices, international conflict and material shortages all affecting infrastructure delivery.

As a result, supply chain resilience is becoming an increasingly important component of local authority highways planning, particularly for essential maintenance and long-term capital programmes.

Authorities are expected to continue monitoring market conditions closely as pressure on infrastructure delivery costs remains uncertain throughout 2026.