It has been discovered that asphalt cement can be toughened with Gilsonite and thinned with a reactive oil. Reactive oil is an oil that contains a high content of unsaturated fatty acids. By using a reactive oil, the oil would cure or react after application of the asphalt cement to the highway, thereby allowing for a lower viscosity application by curing later to prevent rutting. Gilsonite is preferably one having a melting or softening point near about 300° F. so that it is more easily softened and blended with the petroleum asphalt at such temperatures.