Prices in North Korea’s major markets have been climbing as of late. The country’s citizens are bearing an increasingly heavy burden as exchange rates skyrocket and prices continuously rise for items that significantly impact livelihoods such as grain, gasoline, and diesel.
According to Daily NK’s regular survey of prices in North Korea, the market item whose price has risen most conspicuously is oil.
As of Monday, a kilogram of gasoline cost KPW 13,200 in Pyongyang, KPW 12,700 in Sinuiju, and KPW 12,500 in Hyesan.
This represents a 68-98% climb compared to Jan. 11, when a kilo of gas cost just KPW 6,680 in Pyongyang, KPW 6,970 in Sinuiju, and KPW 7,440 in Hyesan.
Diesel prices have climbed even faster than gasoline. As of Monday, a kilogram of gasoline cost KPW 9,600 in Pyongyang, KPW 9,450 in Sinuiju, and KPW 9,500 in Hyesan. That is 92-116% higher than it cost on Jan. 11. In Pyongyang, the price of diesel recently climbed to more than double what it was at the start of the year.
Rising international oil prices in the wake of the Ukraine crisis may have played a part, but the price of oil in North Korea is climbing much faster than international prices.
According to GlobalPetrolPrices.com, which tracks oil prices across the world, a liter of gasoline in China cost RMB 9.381 (about KPW 7,646), while diesel cost RMB 8.433 (about KPW 6,873) as of Monday.
Even if you take into account transportation costs and trade and distribution margins, the market price of oil in North Korea has spiked considerably.
The sharp rise in North Korean oil prices has much to do with measures taken by the authorities to control oil sales.
Daily NK reported last month that small teams of prosecutors have launched a crackdown on private oil sales, with authorities confiscating the oil stocks of merchants caught selling oil in markets.
This may be linked to the government’s efforts to give state agencies first dibs on oil as import prices rise due to climbing international oil prices and the falling value of local currency.
The market prices of grains such as rice and corn also continue to rise. As of Monday, a kilogram of rice cost KPW 5,100 in Pyongyang, KPW 5,300 in Sinuiju, and KPW 5,400 in Hyesan.
The price of rice climbed above KPW 5,000 for the first time this year, having remained below KPW 5,000 since late last year.
The price of rice has risen 13-15% compared to Jan. 11, when rice cost just KPW 4,500 in Pyongyang, KPW 4,600 in Sinuiju, and KPW 4,700 in Hyesan.
The price of corn has climbed even faster. As of Monday, corn cost KPW 2,730 in Pyongyang and KPW 2,700 in Sinuiju. Essentially, it has climbed about 25% since the start of the year.
Public discontent is rising as market prices continue to climb. North Korean authorities provided special gifts of pork, eggs, seafood, fruit and vegetables to cadres and civilians to mark late North Korean leader Kim Jong Il’s birthday on Feb. 16, though these gifts largely focused on the Pyongyang area.
However, people are complaining that the authorities should have provided foodstuffs such as rice or corn instead. In particular, criticism is growing louder in regions that did not receive the gifts.
A resident of the North Korea-China border region told Daily NK although freight trains have been returning to North Korea full of rice and flour since the start of the year, none of it is reaching the people. He also noted that the authorities provided school supplies and school uniforms to children to mark the start of the school year on Apr. 1, but this will not resolve immediate food shortages.
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