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[BUSINESS] · Chile · 2 sources

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Pellet heating fuel shortages reported in southern Chile

Consumers in southern Chile, particularly in Chillán, are facing difficulties accessing pellet heating fuel during the winter months. Despite assurances from the Ministry of Energy that there is no official stockout and that national production capacity is sufficient, local reports indicate long queues, empty shelves, and price increases that have nearly doubled in some areas.

Experts point to a paradox where pellet production occurs year-round, yet supply fails to meet peak winter demand. Dr. Laura Azócar of the Universidad Católica de la Santísima Concepción notes that the industry is facing supply chain shifts. The production of pellets is heavily dependent on pine sawdust from the forestry industry, which has been impacted by sawmill closures and forest fires. For instance, Innapel recently requested voluntary liquidation following a 40% drop in raw material supply.

Due to the scarcity and lack of replenishment dates from suppliers, some residents are considering returning to wood-burning stoves as a more reliable heating alternative.

Entities

Bío Bío · Chillán · Innapel · Ministry of Energy · Universidad Católica de la Santísima Concepción