◆ Fuel Price Surge Clouds the Future of the "Driving Boom"

The recent sharp rise in fuel prices has cast uncertainty over the driving boom's prospects.

ASIAPRESS continuously monitors and publishes price trends inside North Korea. Inflationary tendencies have become increasingly pronounced over the past year, and on April 10 prices hit all-time highs: gasoline at 74,500 won (1.18 USD per liter) and diesel at 70,500 won (1.12 USD per liter).

In the survey conducted on April 11 of last year, gasoline was 23,000 won (0.98 USD) and diesel was 19,000 won (0.81 USD) — meaning gasoline has surged 3.2-fold and diesel 3.7-fold. The disruption caused by US and Israeli strikes on Iran may be a contributing factor.

※ All exchange rates are based on rates at the time of each survey.

"Fuel costs have been rising sharply lately, and you're seeing more and more cars just sitting parked," the reporting partner says. On top of that, vehicle ownership brings with it a range of troublesome additional "costs."

"You have to pay money (in bribes) under pretexts like vehicle inspections, and apparently checkpoints and traffic police frequently demand a share of your fuel — or the fuel itself."

One of the reasons the regime permitted private vehicle ownership appears to have been to draw out the foreign currency held by the donju and other wealthy individuals, as the North Korean government faces a severe shortage of hard currency.

It has now been roughly a year since private vehicle ownership was authorized. Given that vehicles can serve as a means of production, it will be worth continuing to watch closely what social changes private ownership may bring.

※ ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.

Map of North Korea (ASIAPRESS)
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