North Korea fuel prices surge 20% as Iran war squeezes oil supply
North Korea’s market prices have surged for the second consecutive month, with fuel costs leading the way as gasoline and diesel prices each jumped roughly 20% in just two weeks, according to Daily NK’s latest market survey. Daily NK conducts regular price monitoring across North Korea&#
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North Korea’s market prices have surged for the second consecutive month, with fuel costs leading the way as gasoline and diesel prices each jumped roughly 20% in just two weeks, according to Daily NK’s latest market survey.
Daily NK conducts regular price monitoring across North Korea’s informal markets, known as jangmadang, drawing on a network of in-country sources. The survey recorded prices as of March 29.
In one Pyongyang market, gasoline traded at 59,700 North Korean won per kilogram, up 17.5% from the previous survey conducted March 15. Markets in Sinuiju, North Pyongan province, and Hyesan, Ryanggang province, recorded similar increases.
Diesel prices climbed even more steeply. In Pyongyang, diesel reached 57,800 North Korean won per kilogram, a 21.7% jump from two weeks earlier. Sinuiju and Hyesan markets saw diesel prices rise more than 20% over the same period.
Fuel demand and the Iran war drive prices higher
Several factors appear to be driving the surge. Spring planting season has increased demand for agricultural machinery, while construction projects and provincial factory operations have expanded simultaneously, all putting pressure on fuel supplies.
The war in Iran has also played a significant role. The conflict has pushed global oil prices sharply higher and appears to have left China with less crude to spare, potentially reducing the volume of oil it supplies to North Korea.
Daily NK previously reported that North Korean authorities injected emergency funds in mid-March in an attempt to rein in fuel prices after gasoline briefly spiked to 60,000 won per kilogram following the outbreak of the Iran war. While that intervention produced a temporary stabilization, it has not been enough to prevent the latest round of increases.
Exchange rates and food prices also on the rise
Foreign currency exchange rates have also moved higher, though at a slower pace than fuel. As of March 29, the black market rate for the U.S. dollar in Pyongyang stood at 54,200 North Korean won, up 5.7% from two weeks prior.
The yuan appreciated more sharply against the North Korean won. In Hyesan, the exchange rate reached 7,600 won per yuan as of March 29, an 11.1% increase from the previous survey. Other regions recorded similar gains.
Analysts note that fuel and exchange rate movements typically track together, but the Iran war has decoupled them this cycle: global oil price increases and tightening supply have driven fuel costs well beyond what exchange rate movements alone would explain.
Rising exchange rates have in turn pushed up prices for imported food staples. As of March 29 in one Pyongyang market, cooking oil cost 65,100 North Korean won per kilogram, sugar cost 64,900 won per kilogram, and flour cost 27,100 won per kilogram, representing increases of 3.8%, 4.2%, and 6.3%, respectively, compared with two weeks earlier.
Grain prices have also continued their upward trend, though at a more moderate pace than fuel or imported goods. In Pyongyang, rice traded at 25,300 North Korean won per kilogram and corn at 8,700 won per kilogram as of March 29, up 2.4% and 8.7%, respectively, from the previous survey.
The rise in grain prices coincides with the spring lean season, known in Korean as chungunggi, a period each year when food stocks from the previous harvest run low before new crops become available. The steeper increase in corn prices is particularly significant: corn is the primary food source for lower-income North Korean people, and its rising cost is likely to place considerable strain on those least able to absorb it.
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