KUALA LUMPUR - Rising energy prices linked to the Middle East conflict are starting to affect public services in Japan, including transport and health care.

In mid-March, Tokyo’s Bureau of Transportation sought 5.4 million liters of low-sulfur diesel for its Toei bus services from April to June through open bidding.

All bids came in higher than expected, with some 50% to 80% more expensive than December last year, and none were accepted.

The bureau secured diesel for April by switching to no-bid contracts at the end of last month.

The metropolitan government is considering no-bid contracts for May and June procurements as well.

“Bearing in mind that this situation could continue for some time, both the central and local governments must be quick in examining how to respond,” said a senior metropolitan government official.

Cities such as Kawasaki and Kitakyushu have also faced failed open bidding for diesel supplies.

On March 30, six cities which are Yokohama, Kawasaki, Nagoya, Kyoto, Kobe, and Kitakyushu, urged the central government to ensure stable fuel supplies and provide financial support.

Ferry services have also been affected, with some operators reducing trips due to high fuel costs.

Segawa Kisen Co., operating ferries between Sasebo and Saikai in Nagasaki Prefecture, cut four daytime trips after switching to heavy fuel oil following diesel shortages.

Suo-Nada Ferry Co., running ferries between Yamaguchi and Oita prefectures, suspended one night round-trip and plans to raise fares from June.

Health care providers are struggling as some medical equipment, like dialysis machines, relies on crude oil-derived components.

“If the supply of such components stops and patients can no longer receive treatment, it will be a matter of life and death for them,” said a patient support group.

A dental clinic in Tokyo faces a shortage of rubber gloves, with suppliers warning, it is difficult to procure.

The dentist said, if the situation continues for an extended period, they may have to consider suspending their services.

Petroleum products are used in many medical devices, and a Health Ministry official said, the situation is likely to become worse as time goes on.

The government has established a headquarters to ensure stable supplies of medical and other essential goods.

“For the time being, we do not anticipate any shortage of supplies,” Health Minister, Kenichiro Ueno said.

“Given the possibility of oil prices continuing to rise for some time and of emergency stocks becoming depleted, the government needs to present countermeasures ahead of time, assuming the worst-case scenario.

“Based on this, local governments and companies should work out strategies to minimize the possible impact,” Chief Economist, Hideo Kumano said.