Japan is facing growing concerns over a nationwide naphtha shortage that is beginning to affect industries, supply chains, and consumer products. During the first parliamentary party leaders’ debate of the current session on May 20, the issue became a central topic as pressure mounted on Prime Minister Sanae Takaichi’s administration.
Despite the worsening situation, Takaichi insisted that “overall supply remains sufficient” and blamed current disruptions on logistical bottlenecks and distribution problems rather than an actual shortage.
However, private companies have already begun implementing emergency measures. Snack manufacturer Calbee announced that several potato chip packages would switch from color printing to monochrome designs, while Kagome revealed that ketchup packaging would become transparent to reduce the use of ink solvents derived from naphtha.
The crisis intensified after the United States and Israel launched attacks against Iran on February 28, leading to the closure of the Strait of Hormuz. Japan, which relies heavily on Middle Eastern imports for crude oil and petrochemical materials such as naphtha, was immediately impacted.
During the parliamentary debate, opposition leader Junya Ogawa criticized the government’s response:
“The naphtha shortage is causing material procurement difficulties, price hikes, delivery delays, worsening cash flow, and rising labor costs. Businesses across all sectors are struggling.”
Prime Minister Takaichi responded by saying the government was aware of the “distribution bottlenecks” and that the Ministry of Economy, Trade and Industry was working on countermeasures.
Business owners, however, say the reality on the ground is far more serious. Construction and renovation companies are reporting shortages of paints, adhesives, solvents, and resin-based materials. Housing equipment such as system kitchens, bathtubs, and synthetic marble countertops are also becoming difficult to obtain.
A renovation contractor in Japan’s Chugoku region explained:
“Wholesalers are prioritizing large retailers that can pay cash immediately. Small and medium-sized businesses are being pushed aside. The problem is not only prices, but whether materials will continue arriving at all.”
The tourism sector is also feeling the impact. A traditional hot spring inn in northeastern Japan reported shortages of solid fuel used for serving hot-pot meals to guests.
In addition to naphtha shortages, methanol imports from Saudi Arabia have reportedly been disrupted, with suppliers informing customers they are unable to fulfill orders.
Analysts warn that conditions could worsen significantly from June onward, with additional price increases and a sharp rise in corporate bankruptcies.
Kosuke Honma, an analyst at Tokyo Shoko Research, stated:
“Bankruptcies have been increasing since 2023, after pandemic support measures gradually weakened. Inflation, labor shortages, the weak yen, and now Middle East tensions have created an extremely severe environment.”
He added that prolonged instability in the Middle East could push Japan toward its highest bankruptcy levels in more than a decade.
Public trust in the government also appears to be weakening. A Yomiuri poll found that 64% of respondents were unconvinced by the government’s explanation of the crisis, while a Mainichi survey showed cabinet approval ratings dropping to 50%, the lowest level since Takaichi took office.
Political analysts argue that the government is avoiding stronger warnings to prevent public panic, but critics say transparent conservation measures and crisis management policies are urgently needed before the situation escalates further.