Japan Grapples With Naphtha Shortage as Middle East Blockade Ripples Through Daily Life

Daily Life Disrupted: From Potato Chips to Garbage Bags

Japan is learning the hard way how deeply petroleum runs through modern life. Takeaways, supermarkets, and bakeries across the country are running out of plastic bags, food trays, and service gloves as a severe shortage of naphtha chokes supply chains. The crisis has turned everyday transactions into small acts of improvisation. At the ColekoVer supermarket in Kawasaki, south of Tokyo, manager Takeshi Takanohira now asks staff to skip the individual plastic bags that customers expect for fruit and vegetables. Plastic trays for certain produce vanished last month. One station away, the Le Main Qui Pense bakery posted a sign explaining that naphtha shortages caused by the war in the Middle East mean it has run out of plastic bags for baguettes. The shop received a small delivery in mid May, but the supplier cannot promise another. Shisou Tanoshiri, who runs the bakery with her husband, noted that plastic gloves for handling food are also in very short supply. Japanese standards of hygiene mean many customers dislike reusing bags that touch food directly, making the shortage especially felt. In Kofu City, west of Tokyo, the Hinode Delica bento shop is now rewarding customers who bring their own plates or containers with free side dishes and extra toppings. The shop was told container prices will rise by 30% in June. Even rubbish collection is affected. Municipal systems that require residents to separate waste into color coded plastic bags have faced panic buying of those bags, forcing stores to limit sales to two per customer. Some municipalities are temporarily allowing non approved bags. The food sector accounts for nearly one third of Japanese annual plastic use of more than 8 million tonnes, and the current disruptions are hitting hard across the industry. Multiple layers of plastic packaging and wrapping on products remain commonplace in Japan, seen as part of the national service culture. That culture is now coming under severe pressure as supplies run low.

The shortage has penetrated deeper than many shoppers initially expected. A Tokyo restaurant operator told a national broadcaster that rubber gloves and cleaning agents have become difficult to procure, pushing up operating costs. The operator said items like rubber gloves needed for work have been difficult to buy, requiring visits to quite a few stores. Another resident told the broadcaster they heard from a dentist that the clinic no longer had gloves. After hearing that, the resident realized just how serious the situation has become. It is not only independent shops that are struggling. Large chains and public services are also scrambling to adjust.

What Is Naphtha and Why Does It Matter

For most people in Japan, the word naphtha was unfamiliar just months ago. Pronounced “nafusa” in Japanese, it refers to highly flammable liquid mixtures derived from crude oil. It sits between gasoline and heavier fuels in the refining process. Naphtha serves as a raw material for plastics, synthetic fibers, rubber, adhesives, printing inks, and medical supplies such as syringes. It is also processed into ethylene and other chemicals that form the building blocks of countless consumer goods. The food sector alone accounts for nearly one third of Japanese annual plastic consumption of more than 8 million tonnes. When naphtha supplies falter, the effects ripple outward through nearly every aisle of the economy.

Japan relies on the Middle East for more than 90% of its crude oil imports. From that crude, refineries extract naphtha, which petrochemical plants then convert into polyethylene, polypropylene, and other materials. Data from the Japan Petrochemical Industry Association showed that production of polyethylene used in shopping and garbage bags fell by 62% in March compared with the previous year. Other plastics saw similar declines. Because Asia represents the largest export market for Middle Eastern naphtha, the current disruption has hit the region with unusual force. In Japan, wholesale inflation accelerated in April at the fastest pace in three years, with naphtha prices spiking roughly 80%.

The Strait of Hormuz Blockade

The immediate cause of the shortage is the blockade of the Strait of Hormuz, the narrow waterway through which roughly one fifth of global petroleum supplies typically flow. The war in the Middle East has now disrupted that passage for more than two months, choking off exports from major producers including Qatar and Kuwait. Before the conflict, approximately a quarter of global seaborne crude oil and a fifth of liquefied natural gas passed through the strait. The region also supplied vast quantities of naphtha to Asian economies. Even naphtha processed by Asian refineries often originates from crude that moves through the strait, meaning the bottleneck cannot be easily bypassed by local processing alone.

In East Asia, naphtha has emerged as the first major industrial shock from the conflict. Toby Whittington, a lead economist at the advisory firm Oxford Economics, described the substance as the principal mechanism through which supply shocks from the Middle East are transmitting throughout the economy.

In East Asia, naphtha is the principal mechanism through which supply shocks from the Middle East are already transmitting throughout the economy. It feeds into everything. That is why this is beginning to hit economies so hard.

Japan imported over 40% of its naphtha directly from the Middle East before the crisis. Finance Ministry trade statistics for March showed imports of naphtha and other volatile oils from the region fell by 36.9% from the prior year. Naphtha inventories have dropped by roughly a quarter so far this year, creating the worst shortage in five decades according to Eiji Akashi, secretary general of the Japan Banana Importers Association.

Corporate Adaptations and Packaging Changes

Faced with unstable supplies of color printing ink derived from naphtha, major consumer brands are simplifying their packaging. Calbee, the largest snack maker in Japan, announced it would switch 14 staple products including potato chips and Kappa Ebisen shrimp snacks to black and white packaging beginning in June. The company labeled the change “petroleum resource saving packaging” and said the move would halve ink usage. A company representative told media the change was a measure to ensure a stable supply of products. The announcement brought home the seriousness of the geopolitical fallout for ordinary consumers who had previously seen naphtha as an abstract concern.

FamilyMart, one of the largest convenience store chains in Japan, plans to shift to black and white printing on private brand products starting this summer, beginning with sandwich wrappers, onigiri rice ball packaging, and frozen beverage lids. Lawson has switched the lids for small hot coffees from plastic to paper at select locations, with the chain reviewing all packaging materials. Pan Pacific International Holdings, operator of the Don Quijote discount chain, has also begun selling 26 private brand products in simplified monochrome packaging. Nisshin Seifun Welna will stop printing cooking times in red on its spaghetti bands. Even the Topvalu private brand of Aeon has cut plastic use in one product by around 40% by switching from a tray to a bag. Mitsuko Tsuchiya, president of the company operating Topvalu, told reporters that the Middle East crisis has given the firm an opportunity to re-examine its approach to environmental issues. She believes there is still room for further innovations.

Ripple Effects Across Industries

The shortage has spread far beyond supermarket shelves. In the housing industry of Japan, shortages of paint, thinner, insulation materials, and adhesives are forcing construction delays. At a detached home in Osaka Prefecture undergoing exterior renovations, work stalled for roughly three weeks because paint did not arrive. Major developer Mitsui Fudosan has warned buyers that housing handovers could be delayed. Toto temporarily halted orders for unit baths because of adhesive shortages, while Lixil announced planned price increases on toilets and kitchens beginning in August. A paint wholesaler in Nishinomiya, Hyogo Prefecture, described near empty storage areas where shelves normally stack three or four levels high.

At a small paint factory in Osaka employing about 20 workers, staff said shortages of solvents began worsening in mid March. The manufacturer usually relied on existing trading partners, but was forced to contact around ten additional suppliers just to secure materials from two companies. The company president expressed frustration at conditions he had never seen before.

Our production manager has been in this industry for 40 years and says he has never seen anything like this. Even if we produce and ship products every day, orders keep coming in nonstop.

Education is also feeling the strain. Elementary school backpacks in Japan known as randoseru rely on synthetic leather derived from naphtha based materials. One manufacturer, Clare, raised prices on April 1 after polyester and nylon costs increased. School lunch bread suppliers in Miyagi Prefecture reported packaging costs have jumped 30% to 50%. Concerns extend to noodle and dessert containers. School trips face higher costs as airlines raise fuel surcharges. Some schools have collected additional fees from parents to cover the difference. Even banana ripening is at risk. Japan imports about one million metric tons of bananas annually, ripening the green fruit in rooms filled with ethylene gas derived from naphtha. The Japan Banana Importers Association warns that supplies of the gas are running low, threatening a shortage of one of the most popular fruits in the nation.

Medical and service sectors are not immune. A Tokyo restaurant operator told a national broadcaster that rubber gloves and cleaning agents have become difficult to procure, pushing up operating costs. Another resident reported that their dentist had run out of gloves, revealing how far the shortage has penetrated. Air conditioner installation costs have risen sharply as tape and putty supplies dwindle. One Tokyo electronics store raised installation fees from 11,000 yen to 16,500 yen, with plans to increase to 19,800 yen in June. The material cost per unit has reached 9,000 yen. Automobile manufacturers have also been affected, with major makers scaling back production of certain models because of aluminum shortages linked to the broader supply disruption. Japan Airlines and All Nippon Airways have sharply increased fuel surcharges, with ANA raising its surcharge on one way flights to North America and Europe from 31,900 yen to 56,000 yen starting May 1.

Government Response and Public Anxiety

The administration of Prime Minister Sanae Takaichi has faced mounting pressure as the shortages multiply. Officials have insisted the situation is a supply bottleneck rather than a true shortage, and have assured the public that necessary supplies including garbage bags and printing ink have been secured. Environment Minister Hirotaka Ishihara urged citizens to remain calm and avoid panic buying. Deputy Chief Cabinet Secretary Yoshihiko Isozaki was forced to reassure the public about ink supplies after the packaging change by Calbee attracted media attention. The Prime Minister has resisted calls to reduce consumption, instead emphasizing efforts to find alternative oil sources.

Industry leaders and commentators have contradicted the official narrative, warning that the situation will worsen throughout June. Polling conducted in late May found more than 70% of respondents expressed concern about naphtha supply disruptions, and an equal share said the government should call on the public to conserve energy. The cabinet approval rate fell 2.5 percentage points to 61.3%, though it remains relatively high following the landslide election victory of Takaichi in February. Analysts note that it is difficult to gauge how much responsibility the public assigns to the government for a crisis rooted in a foreign war.

Regional Spillover Across East Asia

Japan is not alone in feeling the squeeze. Countries across East Asia source most of their oil and naphtha from the Middle East, and the effects of the Hormuz blockade are reverberating throughout the region. In South Korea, daily sales of plastic garbage bags in Seoul jumped nearly fivefold in March, prompting purchase restrictions and government assurances. The energy and environment minister of South Korea posted on social media that there was no need to worry about standard garbage bag supplies, yet the surge in buying revealed deep public anxiety.

Taiwan, one of the largest per capita users of plastic bags globally with roughly 9 billion consumed annually, imports about 70% of its crude oil from the Middle East. Wholesale prices for plastics have surged up to 40% this year. The government of Taiwan has urged citizens to avoid hoarding plastic bags and is monitoring companies for profiteering. The regional nature of the crisis underscores how dependent East Asian manufacturing economies remain on Middle Eastern petroleum flows. Even as governments draw down reserves and seek alternative suppliers, the sheer volume of materials normally transiting the Strait of Hormuz means that workarounds remain limited and expensive.

What to Know

• Naphtha, a crude oil derivative essential for plastics, inks, and synthetic materials, has become severely constrained because of the Middle East war and the Strait of Hormuz blockade.
• Japan imports over 90% of its crude oil from the Middle East, leaving its economy exposed to disruptions in petroleum shipping lanes.
• Polyethylene production for bags and packaging dropped 62% in March, triggering shortages across food retail, construction, education, and medical sectors.
• Major brands including Calbee and FamilyMart are switching to monochrome packaging to conserve naphtha based color inks.
• Municipal waste systems, housing construction, school lunch programs, and even banana ripening facilities face delays or higher costs because of the shortage.
• Panic buying of plastic bags has erupted in Japan and South Korea, while Taiwan has seen wholesale plastic prices surge by up to 40%.
• The Japanese government describes the situation as a bottleneck, but industry leaders warn shortages will intensify through June.