Pellets are cheaper in wholesale, but what about retail prices? The minister dispels doubts

The head of the Ministry of Climate and Environment noted that the import of pellets to Poland had increased, which, combined with the warm weather for this time of year, resulted in a decline in wholesale prices of this fuel.

I expect retail prices to drop as well, because that's natural. If not, it may be necessary to check - and here I will await the reaction of the Office of Competition and Consumer Protection - whether we are dealing with price collusion - said Hennig-Kloska in Polsat News.

UOKiK: Increased demand is the reason for price increases

At the end of August, the Office of Competition and Consumer Protection assured that it was monitoring the situation on the energy market on an ongoing basis. "The analysis shows that the main reason for the increases is the increased demand related to the growing popularity of pellet stoves, which cannot be kept up by the supply of wood raw materials," the office said in a statement at the time.

It was noted that one of the reasons for the popularity of pellet heating is the possibility of receiving a subsidy for a boiler using such fuel, e.g. from the "Clean Air" program. It was indicated that in 2025, in this program, approximately 77 percent applications for co-financing the replacement of heat sources concerned pellet and wood boilers.

The demand for pellets may continue to grow

The Office of Competition and Consumer Protection (UOKiK) informed that approximately 450,000 people currently use this type of boilers in Poland. households and this number increased by over 90 thousand. compared to 2023. "Pellet production cannot keep up with the growing needs of consumers. For example, wood sales by the State Forests have decreased, and high-quality A1 class pellets are produced primarily from sawdust and residues from wood processing in sawmills," the Office of Competition and Consumer Protection pointed out.

In the Office's assessment, the demand for pellets may continue to grow.

"Our analysis clearly indicates that the reason for the increase in pellet prices are systemic problems, in particular the mismatch of the supply of pellets from domestic resources to the popularity of wood stoves, including those co-financed by the Clean Air program. They are very likely to occur also in the next heating season. The government has tools to limit their negative effects, in particular the Ministry of Energy and the Ministry of Climate and Environment, which supervise PGL State Forests," said Tomasz Chróstny, president of the Office of Competition and Consumer Protection, quoted in the release in August.