Bosnia pellet prices approach 900 KM as raw-material shortage tightens winter supply

Pellet market shows wide price gap

Households in Bosnia and Herzegovina are entering the 2026/27 heating season with sharply higher and unusually uneven fuel prices. The greatest pressure is in the pellet market. Producers quote roughly 550-650 KM per tonne, while official filings by retailers in the Federation of Bosnia and Herzegovina show A1-grade pellets offered for as much as 895 KM per tonne.

Goran Ivanović, president of the Association of Certified Pellet Producers in Bosnia and Herzegovina, said producer prices range from 580 to 650 KM in the Federation and from 550 to 600 KM in Republika Srpska, according to reporting cited by Buka Magazin. The Federation's price register also contains A1 offers of 619 and 620 KM, alongside an A2 offer of 840 KM. The spread means the timing of a purchase, the seller and delivery costs can materially change a household's winter bill.

N1 reported that one large seller was charging 750-830 KM per tonne for pellets. At the same point last year, prices were 580-620 KM, depending on grade. Briquettes have risen from 520-550 KM per tonne to 600-630 KM, while split firewood at that seller costs about 148 KM per stacked cubic metre. Other current firewood offers cited by Buka Magazin are around 120-130 KM, although preparation and transport can lift the final cost to about 134 KM.

Wood shortage restricts production

Producers identify insufficient wood feedstock as the central constraint. Ivanović said pellet companies sometimes have to buy surplus material from other wood processors, adding to costs. The industry is seeking an agreement with the authorities to allocate certain quantities of timber assortments to pellet manufacturers and potentially link feedstock and pellet prices for selected groups of consumers.

Labour, energy and transport costs are also rising, while demand for biofuels from the European market adds pressure. Some producers hold limited stocks, and newly produced volumes often move quickly to buyers. About 70% of consumers responded to an April call to purchase early, when pellets cost approximately 500-550 KM per tonne. Buka Magazin calculated that four tonnes bought at 525 KM would cost 2,100 KM; at 760 KM the bill would be 3,040 KM, and at 895 KM it would reach 3,580 KM.

Gas and electricity add to household pressure

Alternative heating fuels offer limited relief. From July 1, 2026, the wholesale natural-gas price in the Federation rose by 14.42%, from 865.40 KM to 990.19 KM per 1,000 standard cubic metres before VAT. The increase will not translate directly into an identical rise in every household bill, but it raises the cost base for gas suppliers.

Electricity bills are also becoming more sensitive to consumption. Republika Srpska introduced a new household calculation system on February 1, 2026, covering network charges, energy, supply services and renewable-energy fees. EPBiH uses block tariffs in the Federation, meaning households that rely more heavily on electric heaters can move into higher consumption bands during cold months.

Transport may further widen regional differences. Data available on August 20, 2026 showed diesel at about 3.32 KM per litre nationally, with some locations above 3.40 KM and recorded prices of 3.55 KM. For pellet and firewood suppliers, those costs feed into loading and delivery charges. If demand accelerates as temperatures fall while feedstock remains scarce, prices could face further pressure; higher production and improved availability would be needed to ease the market.