Pellet prices climb 20-30% year-on-year ahead of winter, Polish housing cooperatives warn of steep increases

Price surge defies summer norm

Average retail prices for certified A1 wood pellet climbed 20-30% compared to June 2025, according to the Polish Pellet Council (Polska Rada Pelletu). The price per ton now exceeds 1,700 PLN, while a year ago it ranged between 1,200 and 1,400 PLN. In some regions and sales channels, the increases were even steeper.

Polish Pellet Council has been observing a clear rise in wood pellet prices for several weeks, already occurring in the summer period. This is an unusual phenomenon, because so far summer was the period of greatest price stability and the moment when consumers could replenish fuel stocks before the heating season.

Housing cooperative sounds alarm

Spółdzielnia Mieszkaniowa Stokrotka in Cierpicach near Toruń informed residents in May that heating charges would increase, pointing to a 30-35% year-on-year rise in pellet costs. A comparison prepared by the cooperative shows that the cost of nine pallets of pellet rose from 11,760 PLN in May 2025 to 16,145 PLN in May 2026. During the coldest part of the past heating season, the cooperative was forced to purchase pellet at prices exceeding 18,000 PLN per nine pallets. The unusually long and demanding winter further boosted consumption, adding to the financial pressure on households.

Residents voiced frustration on social media. "It is sick that on an estate outside Toruń, where you actually have to drive everywhere, you pay such rent instead of lowering costs. Soon living here will be a luxury," one commenter wrote. Others called for long-term modernisation planning.

Demand climbs while raw material shrinks

The number of households using pellet boilers in Poland is approaching 450,000, and annual demand stands at roughly 2 million tons of premium wood pellet, according to the Polish Pellet Council. That demand is driving prices upward alongside a decline in wood supply.

It is estimated that the number of pellet boiler users is already approaching 450,000 households, so the demand for top-quality wood pellet is growing dynamically. To satisfy active users, we already need about 2 million tons of pellet annually.

Poland's wood supply dropped from 40 million m3 in 2024 to 39 million m3 in 2025, and the market estimates it could fall to 37 million m3 in 2026, according to data obtained by RMF FM. As pellet is made from sawdust and other wood residues, less wood means less raw material for production.

The Ministry of Climate, when asked by RMF FM, stated it would not increase wood supply, though it noted a significant drop in wood exports to China. Ministry data also showed a 12% increase in wood prices in the first quarter of 2026.

Government promises autumn relief

Energy minister Miłosz Motyka said his ministry would analyse the pellet market situation, and he expects more pellet to be available by autumn. The cooperative in Cierpicach has already contracted pellet for the 2026/2027 heating season at 15,750 PLN per nine pallets for transport. However, the Ministry of Climate insists wood prices are stable, contradicting first-quarter data obtained by RMF FM showing a 12% increase. FAKT24.pl reported that some participants in the government's Clean Air programme are in arrears, with one cooperative representative saying: "We are standing against the wall." The Polish Pellet Council warns that demand could double by 2035, a projection that suggests price pressure is unlikely to ease without structural supply changes.