After the surge in pellet prices, three manufacturers made commitments to the residents of Latvia

Three Latvian wood pellet manufacturers signed a memorandum with the Ministry of Climate and Energy, committing to prioritize supplying the domestic market. The decision was made against the backdrop of a pellet shortage and sharp price increases ahead of the heating season.

Three Latvian wood pellet manufacturers have voluntarily committed to prioritize the supply of their products to the domestic market. This was reported by the Ministry of Climate and Energy.

The memorandum was signed by the companies Palleteries (brand Top granulas), Latgranula, and Baltic Wood Trade. The document stipulates that manufacturers will strive to provide Latvian households with a sufficient amount of pellets, adhere to a transparent pricing policy, and consider the energy security of local consumers as their priority.

The initiative arose after residents faced a sharp rise in prices and difficulties in purchasing pellets since the beginning of summer. At the end of July, several major manufacturers stopped accepting new orders, focusing on fulfilling already concluded contracts.

Minister of Climate and Energy Jānis Vitenbergs called on other companies in the industry to join the memorandum.

According to him, Latvia produces enough pellets to first ensure its own residents and only then export the products.

Despite the current sales shortage, the problem does not lie in a lack of production capacity. According to the Latvian Biomass Association LATbio, the country's enterprises are capable of producing about 1.8 million tons of pellets per year, while domestic consumption is approximately 350,000 tons.

As previously explained by the chairman of the board of LATbio, Didzis Palejs, manufacturers are operating at full capacity. The main challenge is that many buyers are simultaneously trying to purchase fuel supplies for the entire heating season.

In other words, factories can produce the necessary volume over the year, but physically cannot manufacture it in a few weeks when demand sharply increases.

The ministry also reported that it has approached the enterprise "Latvian State Forests" with a request to increase the availability of raw materials for biofuel production, paying special attention to the needs of the domestic market.

Additionally, the Consumer Rights Protection Center and the Competition Council have been proposed to strengthen market control over pellets and check for any signs of prohibited agreements among market participants.

According to the ministry, about 40,000 Latvian households use wood pellets for heating — this is approximately 5% of all families in the country. They consume about 200,000 tons of such fuel annually.