A combination of record-breaking salt usage, soaring fuel costs and rising asphalt prices is straining road budgets and forcing some municipalities to scale back their spring paving plans.
The price for a ton of finished asphalt has climbed about $5 since last spring. The increase has coincided with a spike in fuel prices and a brutal winter that drained funds typically reserved for summer roadwork.
Contractors hit by ‘triple threat’
Richard Hudock, president of Derry Construction Co., said the industry is facing its worst crisis in his 42 years in business. Contractors are paying higher prices for liquid asphalt and for the delivery of stone and sand, while simultaneously facing massive fuel expenses to operate equipment.
Because many bids on these projects were submitted before the war with Iran began, Hudock said, his company must absorb the resulting spike in fuel costs.
“Our whole industry is getting hit. Everything is escalating. Everyone is passing along their costs. Our paving season is going to be screwed,” Hudock said. He noted that PennDOT contracts did not include language requiring the state to reimburse the company for material increases, and he does not anticipate costs dropping during the prime paving season.
For contractors like T&H Paving of South Greensburg, the fluctuation in the price of asphalt hasn’t been as damaging as the price of gas and diesel, said owner Tim Bryer. All of the company’s vehicles and paving equipment have become significantly more expensive to operate.
Despite the current pressure, Bryer remains hopeful for a market correction.
“We’re confident this will smooth over when the price (of fuel) goes down,” said Bryer, who has been in the paving business for 50 years.
Salt costs drain local budgets
The $5-a-ton increase in finished asphalt is also a secondary concern for many municipalities compared to the massive amount of salt spread on roads this past winter.
In Unity, the cost of road salt forced immediate changes to the paving program, said Michael O’Barto, chairman of the township supervisors.
“We had to cut back because we used more road salt,” O’Barto said, noting the township tapped into its state liquid fuels allocation to pay winter maintenance. Crews spread more salt on 140 miles of township roads during the 2025-26 winter than ever before, following a similarly record-breaking 2024-25 season. Consequently, Unity will spend about $300,000 for paving this year, a sharp drop from its typical $600,000 budget.
Tom Bell, Greensburg’s public works director, agreed that salt costs had a larger impact than asphalt prices. While Greensburg’s paving program remains comparable to previous years, the city had to divert more liquid fuels funding to winter maintenance to cover the cost of clearing snowy streets.
The price of liquid binder
The technical cost of materials remains a factor, even if it is a secondary one. The average price of finished asphalt sold for highway projects is about $95 a ton this spring, Hudock said.
The most expensive component of finished asphalt is the liquid asphalt — the petroleum-based binder — which rose by $50 a ton over the past year, jumping from $577 in May 2025 to $627 this May. Five years ago, that liquid binder cost $477 a ton.
However, liquid asphalt is used sparingly, typically making up only 3% to 4% of a ton of finished asphalt, Hudock added. Sonny Tresco, CEO of Tresco Companies of Plum, noted that a $5 increase in the final product is not usually significant for a material that fluctuates in price annually.
Regional impacts vary
The impact of these rising costs varies across the region. In North Huntingdon, township Manager Harry Faulk said the $1.3 million paving program is consistent with last year’s and slightly under budget. Similarly, Hempfield Manager Aaron Siko said the municipality did not cut back its $2.17 million program, despite exhausting its salt supply.
In Verona, borough Manager Jacob Russell said rising prices haven’t yet affected plans to pave Arch and Jones streets, but he worries state grant funds could dry up if costs remain high. Because the borough relies on grants rather than an annual plan, Russell said they must be selective, prioritizing roads in the worst condition.
“The pot that the state offers could be dried up faster,” Russell said, adding that a more competitive grant pool could result in smaller awards. “We would have to prioritize what is more important.”
Joe Napsha and Haley Daugherty are TribLive staff writers. Joe can be reached at jnapsha@triblive.com, Haley at hdaugherty@triblive.com.