Serbia Monitoring Pellet Market, Ready to Act on Price Hikes

Serbia's Ministry of Mining and Energy is closely observing the pellet market, signaling readiness to implement measures to stabilize prices and safeguard consumers if current trends persist. This comes as the cost of pellets, a key energy source, has seen a notable increase in recent weeks.

Despite the rising prices, which range from 40,000 to 44,000 dinars per ton at most storage facilities, experts argue there is no legitimate reason for the surge. Professor Branko Glavonjić from the Faculty of Forestry, a leading expert in wood energy, explained that the price hike is driven by increased demand rather than a shortage of the fuel. This suggests market speculation may be a factor.

In response to market fluctuations, the ministry has taken several steps. It previously implemented regulations establishing technical requirements for solid wood biomass fuels, ensuring pellet quality. Additionally, the ministry has facilitated the removal of temporary import bans on wood pellets to increase domestic availability, foster competition, and reduce supply disruption risks. The ministry stated it will continue to monitor the market in cooperation with other relevant institutions and will consider further actions if necessary to ensure market stability and protect end-users.

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we will monitor the developments on the pellet market and, if necessary, take measures to stabilize the market and protect end-users.