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Compare Wood Pellet Costs

The prices of wood pellets, although not constant, are far more stable than oil and gas prices. Wood pellet prices also have a more stable price future than fossil fuels. Because fossil fuels are based on a limited resource, the few countries that control the resource will obviously keep the price as high as the market will allow.

Political disputes can also easily affect the prices of oil and gas, and in some cases the supply can stop altogether. Fossil fuels such as oil and gas are also a key factor in increased carbon dioxide levels within the environment and global warming. Therefore, taxation on fossil fuels (including oil and gas) will likely increase, raising prices further.

Wood pellets can be produced from local purpose-grown, and waste wood resources. Benefits include creating jobs in the collection, processing and distribution of the products. Also, local wood pellet production and consumption reduces transportation distances and costs. So, local wood pellets can support the local economy, keep transportation carbon dioxide and costs to a minimum, and, most importantly, keep wood pellet prices low.

A shortage in product is not really a factor when considering the price of wood pellets. In fact, wood pellet prices are pretty much the same as they were ten years ago when adjusting for inflation. The graph shows a comparison of fuels and percentage of increase in cost over the past few years. Clearly, wood pellet prices have remained fairly steady.

Wood pellet fuel makes budgeting for your heat costs possible without worrying about external political pressure or shortages. To calculate the yearly cost of heating, the average home uses three tons of wood pellets a year, depending on lifestyle.
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