alt Hacker NewsAs a result of the Takaichi administration directing subsidies exclusively toward gasoline, oil companies have stopped prioritizing naphtha production, leading to a shortage of daily necessities. The fact that Calbee’s snack packaging has turned monochrome is a direct consequence of this. The Takaichi administration attempted to pressure Calbee into reversing this decision.
What is even more alarming is that more than half of the Japanese public supports the Takaichi administration, which is implementing such absurd policies.
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> The Takaichi administration attempted to pressure Calbee into reversing this decision.
Do you have a citation for this? This sounds insane. I can't even think of any good faith motivation for doing this, other than to cover up the shortage and to keep the public pacified.
> As a result of the Takaichi administration directing subsidies exclusively toward gasoline, oil companies have stopped prioritizing naphtha production
Not exactly. Japan only produces around 40% of it's naphtha domestically, with 40% from the Middle East and the other 20% from other sources. Much of the pain arose from supply shock for the 40% sources from the ME.
That said, much of the pain around naphata is transitional, as most Japanese imports of naphtha have now shifted away from the Middle East to Algeria, the US, and India [0][1].
Mind you, this is eating significantly into margins, but it is survivable as this isn't Japan's first black swan event of similar calibre - the late 2000s and early 2010s oil price shock occurred during a much more difficult macro environment for Japan, and at least according to ONG analysts [2] (behind login, as most actionable commodities news is) Japan has the reserves needed for around a year of production assuming Japan didn't begin shifting sourcing, which it did.
I'd recommend reading Overseas Energy Investment of Korea and Japan: How did Two East Asian Resources-Rare Industrial Giants Respond to Energy Security Challenges by Oh Seong-ik [3] to learn more about the Korean and Japanese energy security policy - both are using the same methodology, strategies, and contract structures, and despite public rhetoric, a large portion of younger Koreans targeting the Blue House and/or high finance still try to attend Waseda for their undergrad if SKY, KAIST, or Ewha doesn't work out.
[0] - https://asia.nikkei.com/spotlight/iran-tensions/iran-war/jap...
[1] - https://www.argusmedia.com/en/news-and-insights/latest-marke...
[2] - https://direct.argusmedia.com/newsandanalysis/article/280064...
[3] - https://link.springer.com/book/10.1007/978-981-99-0285-9
How much naphtha is used to color a bag of chips? I figured it was like considerably less than a milliliter. Is that really a significant cost even if naptha prices 10x?
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the absurd policy being that they want a military and a birth rate
sooooo controversial, super right-wing right there
Google is telling me that there were production drops in 2025, but it was (1) due to an oversupply caused by Japanese ethylene and benzene exports fell due new plants in China and an increase in cheaper exports from the US to Asian markets, and (2) domestic gasoline consumption dropping.
Everything I can find says the shortages now are due to the Iran war.