Naphtha Supply Issue: Govt Must Face Concerns of Businesses, Households Head-on

Editorial

15:29 JST, May 22, 2026

Amid the prolonged turmoil of the situation in Iran, there are constant complaints about a shortage of naphtha (crude gasoline), a raw material essential for products used in our daily lives.

Despite this, the government continues to insist that there are no supply issues. This will not ease the concerns of the public and businesses. It is essential to implement detailed measures that take the actual situation into account.

The process of turning crude oil into various products is complex and multifaceted. First, crude oil is refined to produce gasoline, diesel, naphtha and other products.

When naphtha is broken down, it yields basic products such as ethylene, which are then processed into raw materials for plastics, paints, synthetic rubber and other products. These raw materials are used to manufacture consumer goods such as packaging materials, ink, clothing and detergents.

Currently, about 40% of naphtha is refined domestically, while slightly over 40% is imported from the Middle East in the form of processed naphtha.

Since the blockade of the Strait of Hormuz has disrupted supplies of both crude oil and naphtha from the Middle East, Japan has increased its imports from the United States, Peru and other countries.

The government’s view is that this will ensure a sufficient supply of naphtha-derived chemical products beyond the year. The government attributes concerns about a supply shortage to companies placing larger-than-usual orders in anticipation of future shortages.

However, given the uncertainty over the future of the situation in the Middle East, it is quite natural for companies to hope to maintain ample inventories and prepare for potential future shortages.

Calbee, Inc.’s announcement that it will switch the packaging for products such as Potato Chips from color printing to black-and-white starting on May 25 is symbolic of responses to the crisis.

If the government claims that not only crude oil but also naphtha is sufficiently secured, it must provide a clear explanation of the actual situation. If the government’s position is not in line with how the public actually feels in their daily lives, it could cause anxiety and lead to panic buying or hoarding.

It is crucial for the government to deepen its analysis of the complex distribution network and provide information that takes corporate concerns into account. Prioritizing supplies to life-saving sectors such as medical care is also an issue. Financial institutions, which possess extensive corporate information, should help companies provide each other with products that are in short supply.

While giving more consideration to the economy, the government has emphasized that there is a sufficient supply of naphtha, and has maintained a cautious stance regarding requests to conserve gasoline and other fuels.

However, if awareness is raised that conserving gasoline and other fuels is necessary, understanding of the importance of crisis preparedness will deepen, and efforts to explore alternatives to naphtha will gain momentum. The government should consider an approach of requesting energy conservation in stages.

(From The Yomiuri Shimbun, May 22, 2026)