Prosecutors’ offices in North Hamgyong Province have recently launched a “mopping up operation” against private merchants selling petroleum products such as gasoline or diesel.
A source in North Hamgyong Province told Daily NK on Monday that the ruling party’s Central Committee had issued an order to prosecutors’ offices in Chongjin and other cities and counties in the province, calling on them to “eliminate oil merchants.” The source said prosecutors have responded by forming small teams that are arresting private oil merchants.
According to the source, the teams have launched intense crackdowns while assuming responsibility for particular districts. Prosecutors are especially targeting merchants who have avoided previous crackdowns with the help of security officials in the Ministry of State Security or Ministry of Social Security.
The teams are flexing their muscles, having been granted the authority to inspect the homes of locals on the list of “oil merchants” at any time they choose. They are also confiscating all the oil the alleged merchants own, declaring it unlawfully purchased.
In fact, prosecutors in Chongjin launched a surprise raid of a man in his 40s in Sinam District — identified by his family name of Kim — on Mar. 10. They confiscated 600 kilograms of gasoline and 500 kilograms of diesel.
Gasoline currently goes for KPW 12,000 a kilogram in Chongjin, while diesel goes for KPW 9,300 a kilogram. The prosecutors’ haul would therefore amount to KPW 11.85 million, or about USD 1,800.
A similar case took place in Hoeryong’s Nammun-dong neighborhood on Mar. 12. Prosecutors raided the home of a man in his 50s — surnamed Pak — who had built up relationships with officials in the Ministry of State Security and Ministry of Social Security.
A scuffle ensued when they tried to take his oil, with Pak saying they could take the oil “over his dead body.” This failed to dissuade the prosecutors, who filled up a vehicle with close to two tons of oil.
Apparently driving the war on private oil merchants is the government’s belief that these business people are to blame for the recent spike in oil prices. Officials think the merchants are causing havoc by manipulating prices to make money.
The crackdown may also be a strategy to absorb foreign exchange. The source said the state will seize the foreign currency private individuals are earning, including oil merchants.
The source said locals caught up in the crackdowns in places like Chongjin and Hoeryong are having their oil seized and undergoing intense investigations while being detained. He said the crackdown is no short-term campaign, and that the province will likely continue it for some time.
