By Kit Maher, David Goldman, CNN
(CNN) — Safe sex could get more expensive if the Iran war continues to disrupt global supply chains, according to a new interview with the CEO of the world’s largest condom manufacturer.
Karex CEO Goh Miah Kiat told Reuters on Tuesday that the company may be forced to raise prices at least 20% to 30%, depending on how long the disruption lasts. Global supply chains have been impacted by the war since the end of February and the chokehold on the Strait of Hormuz, cutting off some of the materials used in condom production.
“The situation is definitely very fragile, prices are expensive,” Goh told Reuters. “We have no choice but to transfer the costs right now to the customers.”
Based in Malaysia, Karex produces condoms, personal lubricants, gloves, medical catheters and probe covers. The company manufactures male latex condoms including ONE, Trustex, Carex and Pasante, and it can produce over 5 billion condoms annually. Karex also exports to more than 130 countries, according to its website.
Goh told Reuters that along with higher costs for manufacturing and packaging condoms, there are delays in shipping.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said.
CNN has reached out to Karex to see when the price hikes might take place. Meanwhile, Goh told Reuters that the company has enough supply to last a few months.
As gas prices have surged since the Iran war, oil and gas have gotten the bulk of the attention. Economists fear that rising prices could soon lead to a pull-back in consumer spending and oil shortages could stymie production. That’s particularly true in Asia, which relies heavily on Middle Eastern oil for fuel.
But the war has also hurt production of so-called feedstocks – petroleum byproducts that are used to make plastics and other materials. Among them: naphtha, which is used to make packaging materials, and silicon oil and ammonia, which are key ingredients in condom production.
“You hear a lot about crude oil and the impacts to diesel and gasoline – but feedstocks and petrochemicals are in short supply, too,” said Angi Gidea, KPMG’s global lead for oil and gas.
For example, 41% of Asia’s naphtha comes from the Middle East, Gidea noted. If the countries that make the stuff we purchase – including Malaysia – can’t access raw materials, they have to raise prices to compensate.
But raw materials aren’t the only problem.
Some countries, including Myanmar and Cambodia, have begun rationing fuel. Some schools in southeast Asia, including in Vietnam, have given stay-at-home orders as commutes have become too expensive for students. Industry analysts fear that is also hurting factory workers’ ability to get to manufacturing facilities, potentially slowing production of key products set for delivery overseas – including to the United States.
The-CNN-Wire
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