"If You Don't Buy Now, Prices Will Rise Even More": North Korean Gasoline Prices Surpass South Korea as Panic Buying Spreads Amid War Ripple Effects

Panic Buying of Gasoline Triggered by Hormuz Blockade and Soaring Exchange Rates

It has been reported that gasoline prices in Pyongyang have surpassed those in South Korea, following a sharp rise triggered by the Middle East war and the blockade of the Strait of Hormuz. There are also concerns that rising fuel prices could lead to broader price instability throughout the North Korean economy.

According to NK News, a U.S.-based media outlet specializing in North Korean affairs, as of the 6th (local time), gasoline prices in Pyongyang soared from $1.24 per kilogram on April 7 to $2 per kilogram. When converted, this amounts to $1.56 per liter, surpassing the price of gasoline in South Korea, which is $1.41 per liter.

Just a month ago, gasoline prices in Pyongyang were about $0.97 per liter, lower than in South Korea. However, NK News reported that the recent surge in fuel prices in North Korea has reversed this trend.

Daily NK, a media outlet focused on North Korea, also reported that North Korean gasoline prices rose from $0.99 per kilogram on March 15 to $1.10 per kilogram on April 26. Over the same period, diesel prices increased from $0.92 to $1.04 per kilogram. According to a source familiar with the price situation, this surge has led to panic buying of gasoline and other fuels in North Korea.

This is attributed to the impact of the blockade of the Strait of Hormuz resulting from U.S. military actions against Iran. Since the Strait of Hormuz handles one fifth of the world's seaborne crude oil shipments, the blockade pushed international oil prices above $120 per barrel at one point, and the ripple effects have even impacted the isolated North Korean economy.

The sharp depreciation of the North Korean won has also driven up gasoline prices. According to Daily NK, the North Korean won-to-dollar exchange rate, which was around 45,000 won per dollar in early March, soared to 69,210 won per dollar by April 26.

Experts analyzed that the rise in fuel prices will be passed on to production and logistics costs, causing widespread damage to the broader North Korean economy. NK News reported that this is likely to result in higher consumer prices for essential goods, negatively impacting the real lives of most North Korean residents.