North Korea's domestic fuel prices are surging as the military clash between the United States and Iran shakes global oil markets. Gasoline in North Korea, once cheaper than in South Korea, has recently surpassed South Korean prices, with panic buying spreading among residents.
Gasoline prices in Pyongyang jumped from $1.24 per kilogram in early last month to $2 recently, according to NK News, a U.S.-based outlet specializing in North Korea, on Friday (local time). Converted to a per-liter basis, that comes to roughly $1.56 (about 2,259 won), exceeding South Korea's current average gasoline price of approximately $1.41 (2,042 won) per liter.
Just a month ago, Pyongyang gasoline prices stood at around $0.97 per liter, lower than South Korea, but prices rose rapidly following the deteriorating Middle East situation and escalating tensions in the Strait of Hormuz, NK News reported.
Anxiety is also growing among North Korean residents, with many saying, "If you don't buy now, prices will rise even higher."
Daily NK, citing local sources last month, reported that "transportation industry workers are complaining that rising fuel prices are eroding their profits," adding that "they are competitively buying up fuel before prices rise further." The outlet also noted that "a perception is spreading that the more you stockpile, the more you gain."
Experts analyze that U.S. military action against Iran and the possibility of a Strait of Hormuz blockade are directly affecting the North Korean fuel market. The decline in the value of the North Korean currency has further amplified the perceived price increase, they explain.
North Korea's won-dollar exchange rate has indeed surged. According to Daily NK, the North Korean exchange rate, which stood at about 45,000 won per dollar in early March, jumped to around 69,210 won by the end of last month — a rise of nearly 50%.
Rising fuel prices are not limited to vehicle operating costs. In a system like North Korea's, where logistics and production depend heavily on fuel supply, prices of daily necessities and transportation costs are likely to rise in a cascading manner. NK News analyzed that "the surge in fuel prices could translate into a broad burden on the overall North Korean economy."
Meanwhile, North Korea has recently issued messages strongly criticizing the United States over the U.S.-Iran clash, effectively taking Iran's side.
Kim Yo-jong, deputy department director of the Workers' Party of Korea, described the United States and its allies as "tyrannical and reckless international bullies" in a statement in March criticizing the South Korea-U.S. joint military exercise "Freedom Shield (FS)."
According to the Korean Central News Agency, Kim Yo-jong said, "The global security structure is collapsing, and wars are breaking out everywhere," arguing that "the U.S.-South Korea joint exercises will further destroy regional stability."
In particular, she said, "There is no distinction between exercises and actual combat when it comes to the military actions of hostile states," adding that "they must be suppressed not with a proportional response, but with an overwhelming and preemptive ultra-strong offensive." Experts view these remarks as a message aimed at the U.S. airstrikes on Iran and operations targeting its leadership.
