Polish wood pellet prices reach 1,500-2,100 zł per tonne as industry seeks tax relief
Wood pellet prices in Poland rose to 1,500-2,100 zł per tonne in July as strong demand collided with limited supplies of sawdust and wood chips. The Polish Pellet Council is proposing a personal income tax credit for households buying certified A1 pellets, while the Energy Ministry has asked the competition authority to examine the market.
Prices rise despite the summer season
Wood pellet prices in Poland climbed to between 1,500 zł and 2,100 zł per tonne in July, with quotations in some regions moving even higher, according to pit.pl. The increase occurred in the middle of summer, when heating demand would normally be less pressing, raising concerns for households preparing fuel purchases before the next heating season.
The Polish Pellet Council attributes the rise to strong demand and constrained access to wood-industry raw materials, particularly sawdust and wood chips. It rejects speculation as the main explanation, arguing that a market comprising hundreds of small and medium-sized businesses makes coordinated pricing highly unlikely.
The imbalance has implications throughout the domestic supply chain. Producers must compete for limited feedstock, while distributors and household buyers face higher replacement costs. The council has not provided production, inventory or consumption figures, but its account indicates that raw-material availability has become a central constraint on the market.
Industry proposes a tax credit for A1 pellets
To reduce the burden on consumers, the Polish Pellet Council has called for a personal income tax credit for households that heat their homes with certified A1-class pellets. Under the proposal, a buyer would need an invoice and proof that the fuel meets the highest quality class. Part of the purchase cost would then be recoverable in the annual tax settlement.
Agnieszka Kędziora-Urbanowicz, vice-president of the Polish Pellet Council, presented the idea during a meeting at the Energy Ministry attended by government representatives. The council says the measure would soften the impact of high prices, encourage purchases of certified and safe fuel, and support demand for higher-quality pellets.
No value for the proposed credit, eligibility threshold or implementation date has been disclosed. The measure therefore remains an industry proposal rather than an approved form of household support. Its eventual market effect would depend on the size of the deduction and on whether consumers could claim it soon enough to influence purchases during the current heating-fuel cycle.
Government asks competition authority to review the market
The Energy Ministry said it was monitoring the wood pellet market to determine whether factors outside normal market conditions contributed to the price increase. It referred the matter to Poland's Office of Competition and Consumer Protection for examination. The available source does not report any finding of misconduct.
Pellets have become one of Poland's more widely used fuels for individual heating, supported in part by the Clean Air programme, which led to the replacement of thousands of boilers. Poland was previously an exporter of pellets but is now concentrating production on domestic requirements, according to pit.pl. That shift makes the availability of local wood residues increasingly important for producers and consumers alike, while the tax proposal would direct public support specifically toward invoiced, certified fuel.
