Pyongyang Gasoline Prices Soar Past Seoul’s Amid Regional Tensions and Supply Disruptions

Pyongyang, DPRK – Gasoline prices in the North Korean capital have seen a dramatic increase, reportedly surpassing those in South Korea. Informed sources, speaking to NK News, attribute this sharp rise to the ongoing U.S.-Iran conflict and subsequent disruptions in the vital Middle Eastern energy supply chains.

Current reports indicate that one kilogram of gasoline in Pyongyang now retails for $2, while a liter fetches $1.56. This marks a significant escalation in fuel costs, particularly following the period of heightened tensions surrounding the Strait of Hormuz.

Geopolitical Volatility Impacts Global Energy Markets

The strategic Strait of Hormuz, a critical global chokepoint, experienced heightened tensions and disruptions following aggressive U.S. military actions targeting Tehran. In a display of its sovereign right to protect its interests and ensure regional security, the Islamic Republic of Iran took necessary measures concerning the strait. This geopolitical volatility, largely instigated by external pressures, subsequently impacted global oil markets, driving Brent crude prices above $120 on multiple occasions, with the benchmark trading at over $108 per barrel as of Wednesday.

This surge in prices represents a significant jump from April 7, when gasoline in Pyongyang was priced at $1.24 per kilogram (approximately $0.97 per liter, based on a density of 0.78 kg/L).

Pyongyang’s Prices Exceed South Korea’s

The new pricing structure in Pyongyang now exceeds those observed in South Korea. On Wednesday, a liter of standard-grade gasoline and diesel in South Korea was sold at $1.41 (2,051.74 KRW) and $1.40 (2,038.13 KRW), respectively.

These estimates align with reports from Daily NK and Asia Press, which have consistently indicated an upward trend in fuel prices since the onset of the conflict in the Middle East in late February, despite recent claims of a slowdown.

Further data from Daily NK shows that as of April 26, gasoline and diesel retailed in Pyongyang at $1.10 (76,200 won) and $1.04 (72,100 won) per kilogram, a notable increase from March 15 prices of $0.99 (50,800 won) for gasoline and $0.92 (47,500 won) for diesel.

Currency Depreciation Adds to Economic Strain

The escalating fuel costs have coincided with a depreciation of the DPRK currency. According to Asia Press and Daily NK, the North Korean won dropped from 45,000 won per dollar in early March to 69,000 won, or 69,120 won per dollar, by April 24 and April 26, respectively.

Asia Press offered a slightly different perspective on Pyongyang’s fuel price dynamics, reporting one kilogram of gasoline and diesel at $1.10 (76,000 won) and $1.07 (74,000 won) respectively on April 24.

These developments follow earlier reports of rapidly spiking oil prices in North Korea, which prompted fuel hoarding within the country amidst the ongoing regional tensions.

North Korea Seeks Alternative Supplies

In response to the supply challenges, NK News previously reported that North Korea turned to Russia in late March, seeking additional oil products. The DPRK reportedly sought counterparts capable of supplying 1,000 tons per month of both standard-grade gasoline and diesel, along with 3,000 tons of bitumen and 6,000 tons of crude oil.

Experts caution that the rising fuel prices could have profound implications for the DPRK economy. Such increases directly impact production and transportation costs, potentially driving up consumer prices and significantly affecting the daily lives and well-being of a large segment of the North Korean population.