North Korea fuel prices spike 25% amid Iran war before stabilizing
Fuel prices in North Korea spiked by as much as 25% in early March following the outbreak of war involving Iran, before partially stabilizing after authorities intervened with emergency measures, Daily NK has learned. According to Daily NK’s regular market price survey, the price of one kilogr
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Fuel prices in North Korea spiked by as much as 25% in early March following the outbreak of war involving Iran, before partially stabilizing after authorities intervened with emergency measures, Daily NK has learned.
According to Daily NK’s regular market price survey, the price of one kilogram of gasoline at a Pyongyang market stood at 50,800 North Korean won (approximately $36) as of March 15, up 4.3% from the previous survey conducted March 1.
Similar price increases were recorded in markets in Sinuiju, North Pyongan province, and Hyesan, Ryanggang province.
Diesel, which faces higher commercial demand, saw a steeper rise. One kilogram of diesel at a Pyongyang market was priced at 47,500 North Korean won (approximately $34) as of March 15, up 5.3% from two weeks earlier.
Prices briefly surged before emergency intervention
During the first week of March, however, both gasoline and diesel prices had surged more than 25% before coming back down. Multiple sources in North Pyongan province told Daily NK that gasoline prices in Sinuiju briefly climbed above 60,000 North Korean won (approximately $43) per kilogram. The spike was severe enough that factories and farms lined up at fuel distribution points with fuel vouchers but were turned away empty-handed.
With enterprises and farms unable to operate machinery due to the acute shortage, North Korean authorities moved quickly to stabilize prices. Sources say fuel prices fell back relatively rapidly following the intervention, though the specific measures taken by authorities have not been confirmed.
China’s reduced oil supply fuels the price shock
Analysts point to a reduction in Chinese oil supplies to North Korea as a key driver of the price shock. While Iran has continued to cooperate with China on oil supply and transport despite the ongoing conflict, China’s overall crude imports have declined, pushing domestic fuel prices up 10 to 15% in March.
As of March 9, gasoline prices in China’s Liaoning province had jumped roughly 13.2%, from 6.8 Chinese yuan (approximately $0.94) to 7.7 yuan (approximately $1.06) per liter.
According to Reuters and other international media, China’s National Development and Reform Commission (NDRC) has banned exports of gasoline, diesel, and aviation fuel in response to potential fuel shortages stemming from the Iran conflict. Analysts say this export ban has likely prompted China to trim the volume of fuel it supplies to North Korea.
Peter Ward, a researcher at the Sejong Institute, told Daily NK that given China’s sweeping fuel export restrictions following the Iran war, a partial reduction in crude oil supplies to North Korea cannot be ruled out.
Ward cautioned, however, that a complete halt to crude oil deliveries via the China-North Korea pipeline is unlikely. “Completely stopping the flow of crude through the pipeline would create technical maintenance problems,” he said, adding that a partial reduction is far more probable than a full cutoff.
Ward also warned that if crude imports continue to decline, North Korean trading companies and fuel distributors may preemptively raise gasoline and diesel prices, potentially driving market fuel prices up sharply.
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