[SMM Aluminum Flash News] US-Iran Tensions Raise Costs for Karnataka State Transport Corporations

Published: Jun 23, 2026 17:58

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Three state-run transport corporations in Karnataka, India, are facing rising operating costs due to supply chain disruptions linked to US-Iran tensions. Officials reported that prices of key materials, including spare parts, petrochemical products, liquid urea, aluminium sheets, lubricants and tyre-retreading rubber, have increased by 10%-30% in recent months. At KSRTC, monthly material expenses rose from INR 450 million to INR 540 million, while higher diesel prices added another INR 5 million in monthly fuel costs. Similar cost pressures have been reported by KKRTC and NWKRTC, which are also experiencing higher fuel and procurement expenses. Supply shortages and rising prices across global and domestic supply chains have made it difficult for suppliers to maintain previous contract rates, forcing transport operators to issue new tenders and seek alternative supply sources. Aluminium sheet costs were among the materials affected by the recent disruptions.

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