New Regulations on Heating Fuels Set to Transform Market in Serbia
As heating season concludes, prices of wood and pellets rise amidst new quality standards.
With the conclusion of the heating season approaching on April 15, the Serbian market for heating fuels is anticipating significant changes.
Branko Glavonjić, a professor at the Faculty of Forestry, reported an increase in the prices of firewood and pellets at the beginning of March.
He noted that the upcoming regulations will enforce that only high-quality wood fuels and pellets be available on the market.
A new regulation, prepared by the Ministry of Mining and Energy, is expected to be approved in the coming days.
Glavonjić stated that the availability of firewood and pellets has remained satisfactory throughout the heating season, with prices stabilizing from November of the previous year until early March, punctuated by slight reductions in December.
However, since early March, the prices of firewood have risen between 200 to 600 dinars per cubic meter, depending on the region.
The price of pellets has also increased, ranging from 950 to 2,400 dinars per ton based on the warehouse and manufacturer.
Production challenges have plagued the pellet manufacturing sector in Serbia for the last three years, with outputs decreasing.
Last year, pellet production was down by 160,000 tons compared to 2021. The government previously enacted a regulation to temporarily limit the import of pellets, which was extended multiple times before being lifted in early February.
This measure assisted domestic producers in managing their pellet inventories.
The government has also formed a working group within the relevant ministry to develop the new regulation concerning solid fuels, which is anticipated to be officially adopted shortly.
This regulation will oversee the quality control mechanisms for wood fuels sold in Serbia, mandating adherence to European standards.
Regarding pellets, Glavonjić highlighted that only the highest quality will be permitted for sale, with regulatory bodies to be established for quality assurance.
Sellers will be required to provide a declaration, valid for six months, confirming compliance with the new regulations.
Wood used as industrial raw material will not fall under the new regulation.
Notably, the regulation will require the testing of 20 different parameters for pellet quality.
If any one parameter is not met, the pellets will not be allowed for sale.
The regulation will take effect eight days following its publication in the Official Gazette, with enforcement beginning 90 days later, around mid-July.
Branko Glavonjić, a professor at the Faculty of Forestry, reported an increase in the prices of firewood and pellets at the beginning of March.
He noted that the upcoming regulations will enforce that only high-quality wood fuels and pellets be available on the market.
A new regulation, prepared by the Ministry of Mining and Energy, is expected to be approved in the coming days.
Glavonjić stated that the availability of firewood and pellets has remained satisfactory throughout the heating season, with prices stabilizing from November of the previous year until early March, punctuated by slight reductions in December.
However, since early March, the prices of firewood have risen between 200 to 600 dinars per cubic meter, depending on the region.
The price of pellets has also increased, ranging from 950 to 2,400 dinars per ton based on the warehouse and manufacturer.
Production challenges have plagued the pellet manufacturing sector in Serbia for the last three years, with outputs decreasing.
Last year, pellet production was down by 160,000 tons compared to 2021. The government previously enacted a regulation to temporarily limit the import of pellets, which was extended multiple times before being lifted in early February.
This measure assisted domestic producers in managing their pellet inventories.
The government has also formed a working group within the relevant ministry to develop the new regulation concerning solid fuels, which is anticipated to be officially adopted shortly.
This regulation will oversee the quality control mechanisms for wood fuels sold in Serbia, mandating adherence to European standards.
Regarding pellets, Glavonjić highlighted that only the highest quality will be permitted for sale, with regulatory bodies to be established for quality assurance.
Sellers will be required to provide a declaration, valid for six months, confirming compliance with the new regulations.
Wood used as industrial raw material will not fall under the new regulation.
Notably, the regulation will require the testing of 20 different parameters for pellet quality.
If any one parameter is not met, the pellets will not be allowed for sale.
The regulation will take effect eight days following its publication in the Official Gazette, with enforcement beginning 90 days later, around mid-July.
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