Latvia’s wood pellet prices surge as competition authority points to supply pressures

Retail wood pellet prices in Latvia have risen sharply, driven by supply constraints, production costs and demand from export markets, according to an assessment by the Competition Council.

Between October 2025 and late August 2026, the average listed retail price of a 15 kg bag increased by approximately 73%, from €4.28 to €7.42. The average lowest available price, including discounts, rose by 40%, from €4.16 to €5.83.

The authority found that pellet purchasing costs accounted for approximately 70% of the final retail price. At the production stage, raw materials represented around 60% of costs, with electricity, labour, packaging and transport contributing to the remainder.

The findings illustrate how Latvia’s internationally traded biomass sector can transmit supply and cost pressures to domestic heating consumers, particularly ahead of the winter season.