Heating with wood pellets has become significantly more expensive. In January, customers had to pay up to 28 percent more for loose pellets than they did six months ago. In Upper Austria, consumers have to dig deepest into their pockets after Tyrol and Vorarlberg.

While gas, oil, and electricity have recently become cheaper, pellet heating users are now paying just under $400 per ton in January instead of around $308. That is up to 28 percent more than six months ago.

According to the industry association ProPellets, there continues to be a clear west-east divide across Austria: heating with pellets is most expensive in Tyrol and Vorarlberg, closely followed by Upper Austria and Salzburg. Pellet prices are currently cheapest in Burgenland.

Geopolitical situation as a reason for high prices
The industry cites the tense geopolitical situation as the main reason for rising prices, with the war in Ukraine playing a significant role, among other factors.

There was an exceptional situation in 2025 with regard to the seasonal development of pellet prices: in previous years, the cheapest prices were usually found in the spring. Prices in April and May were on average five to ten percent below the level of the fall and winter months. “Due to the geopolitical situation, there was no stockpiling in 2022 – the usual seasonal price structure did not materialize,” writes ProPellets.

Heating oil industry sees itself as a price stabilizer
On Wednesday, the industry association Energie.Wärme.Österreich emphasized that heating oil prices are stable despite high demand, while buyer interest has driven up pellet prices. “Within the energy component of the consumer price index (CPI), heating oil proved to be a stabilizing factor in 2025,” said Managing Director Martin Reichard.

Source: ooe.orf.at