Online Reporter
The boss of the world’s biggest condom maker, Karex, says the firm will raise its prices by up to 30 percent or possibly more if the Iran war continues to disrupt supplies of the raw materials used in its products.
Karex’s chief executive Goh Miah Kiat told media outlets that production costs have risen sharply since the start of the conflict.
The Malaysia-based firm produces more than five billion condoms a year and supplies leading global brands like Durex and Trojan, as well as state health systems like the UK’s NHS.
Goh made the comments in interviews with Reuters and Bloomberg. The BBC has contacted the company.
Global oil supplies have been severely disrupted since Iran responded to US and Israeli airstrikes with threats to target vessels in the Strait of Hormuz.
That has effectively closed the waterway, causing huge disruptions to global supply chains.
Around a fifth of the world’s crude oil and liquified natural gas (LNG) – as well as other petrochemicals – usually passes through the strait.
Karex relies on materials derived from oil, including ammonia – which is used to preserve latex – and silicone-based lubricants.
Demand for condoms has risen by about 30 percent this year, with higher freight costs and delays to shipping worsening shortages, Goh said.
“In bad times, the need to use condoms is even more because you’re uncertain with your future, whether you’d still have a job next year,” he told Bloomberg.
“If you have a baby right now, you’ll have one more mouth to feed,” he added.
The surge in condom prices underscores how the US-Israel war with Iran, which has already rocked the world’s energy markets, is also pushing up prices of other goods for consumers.
The war has helped to trigger a surge in air fares, with the lowest-priced economy tickets costing 24 percent more on average than they did a year ago, according to new research.
Meanwhile, disruption to shipments through the Gulf has led to higher fertiliser prices and a shortage of helium, which is used to make computer chips.
The bottled water industry is also under pressure as manufacturers struggle to get hold of raw materials.
Earlier this month, the United Nations warned that sugar, dairy and fruit prices will climb due to the rising cost of transport.
The status of peace talks between the US and Iran remained unclear on Wednesday after President Donald Trump said he will extend a ceasefire between the two countries until negotiations have progressed.
– BBC
