North Korea’s recent increase in oil imports from China and Russia has led to a fall in diesel market prices, Daily NK has learned.
According to Daily NK’s regular survey of market prices in North Korea, a kilogram of diesel in markets in Pyongyang cost KPW 10,000 as of June 11. This was 14.5% less than it did in the last survey two weeks ago on May 29, when it cost KPW 11,700.
The price of diesel in Pyongyang shot up to KPW 12,000 a kilogram in the middle of last month but began falling from late June. Recently, diesel prices plunged by almost 20% in just a month.
In Hyesan, where prices tend to be higher than in the interior of the country, a kilogram of diesel cost KPW 16,000 in markets as of June 11. This was 7.9% less than it cost nearly a month ago on May 14, when it cost KPW 12,600, a less pronounced drop than in other regions.
In the case of Hyesan, comparatively less oil is in circulation because oil transportation prices are high, along with the fact it is not a major agricultural production area.
Gasoline prices also fall
Daily NK’s regular survey of market prices found that gasoline prices also fell, but not as much as diesel prices.
A kilogram of gasoline cost KPW 13,300 in one market in Pyongyang as of June 11, a 6.3% drop from May 29, when it cost KPW 14,200.
In Hyesan’s markets, a kilogram of gasoline cost KPW 14,000 as of June 11, a 4.1% drop from May 29, when it cost KPW 14,600.
The drop in oil prices in North Korean markets appears to be the result of the government’s recent expansion of oil imports from China and Russia.
North Korea has been expanding oil imports from China since mid-May, and recently dramatically increased imports of refined oil from Russia from early June.
“An order was issued early this month to expand diesel imports for the farming season, and a lot of oil was imported from Russia in particular,” a source in Pyongyang familiar with the situation said. “Russian oil is coming in by ship, but also by tanker truck.”
According to a June 13 report on the website of the UN Security Council Sanctions Committee on North Korea, Russia supplied 67,300 barrels of refined oil from December to April. This was the first Russian supply of refined oil to North Korea in two years and four months. The last shipment reported to the UN occurred in August 2020.
However, the figure only includes refined oil exports officially reported to the UN. If unofficial exports are included, North Korea may have received more oil from Russia than officially recorded.
Daily NK reported last August that North Korea had imported grain such as whole wheat and energy products like oil and gas through the North Korea-Russia border, citing several sources in North Korea.
Translated by David Black. Edited by Robert Lauler.
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