Amid a global supply disruption, Japan is finding itself hard to navigate through an acute shortage of naphtha, a crude oil byproduct that is necessary for the operations of multiple industries. As the blockade of the Strait of Hormuz in Iran continues with an unclear stalemate, Japan is facing deep concerns over the shortages of this chemical compound.
Japan, being an island nation, depends upon imports of almost all raw materials for the means of production. The war in West Asia has led to fuel prices in the country shoot up, and inflation rising. The conflict on the other side of the continent is seemingly undermining prime minister Sanae Takaichi’s electoral success, with the inflation rising with concerning rates.
Though the country has one of the largest strategic oil reserves that can provide around 200-250 days of domestic consumption, concerns over shortages in naphtha are on the rise. The direness of the shortage was brought up in the public discussion when Japan’s largest snack manufacturer, Calbee, announced that they are forced to sell their flagship potato chips in monochrome packaging, as the Naphtha shortage has hindered the production of ink that colours the packets.
What is Naphtha?
Naphtha, a liquid hydrocarbon mixture, like Turpentine, is a byproduct extracted from crude oil, and is used as a standard solvent for thinning oil-based paints, varnishes, and lacquers. It is highly effective for degreasing machine parts, metal cleaning, adhesive removal and dry cleaning.
Though Naphtha is used globally, Asian countries are more vulnerable to the current disruption of supply as the largest importer of Naphtha from West Asia, especially Japan. According to reports, the price of Naphtha has increased 79.4 percent since the war broke out in West Asia.
After a Kyodo News poll showed that upwards of 70% of people are anxious over the country’s naphtha shortage, Japan’s deputy chief cabinet secretary moved quickly to calm fears, announcing that the nation has secured plenty of the byproduct for ink. The crisis has reportedly reduced the newly elected prime minister’s popularity, with the cabinet’s approval rate falling 2.5 percentage to 61.3 percent in the latest poll by Kyodo News.
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