Diesel prices across the EU have risen by 34% since the end of 2025, adding hundreds of euros to long-distance timber movements and widening the cost gap between competing production regions. A new analysis by Global Wood Markets Info (GWMI) shows how the increase is moving through Europe\u2019s wood supply chain at a time when weak construction demand leaves mills little room to pass higher logistics costs to customers.<\/p>\n
Europe\u2019s wood industry has entered another transport cost crisis. The EU\u2019s weighted average diesel price reached \u20ac2.04\/litre at the end of August, compared with \u20ac1.52\/litre at the end of December 2025. The increase of almost \u20ac0.52\/litre affects an industry in which raw material is heavy, geographically dispersed and frequently moved several times before reaching the final customer.<\/p>\n
Timber must be collected from forests, transported to sawmills or panel plants and then moved again as softwood lumber, panels, pulp, pellets or finished products. In many cases, the value per transported tonne is comparatively low, making freight costs far more important than in industries producing smaller smaller or higher-value goods.<\/p>\n
The diesel increase is spreading along the entire supply chain. Forest contractors face higher costs for harvesters, forwarders and timber trucks. Sawmills pay more to secure sawlogs and deliver lumber. Panel producers are exposed through the transport of wood residues, recycled wood, chemicals and finished boards. Pellet plants must absorb higher collection and distribution costs, while exporters face additional roadls haulage charges before products even reach ports or rail terminals.<\/p>\n
Diesel prices rise across Europe<\/strong><\/p>\n European Commission Commission figures for August 31 show that diesel prices have increased in every major wood-producing and consuming market since the end of 2025. France, Czechia, Estonia and Germany recorded increases of approximately 40% or more, while Finland remained among the most expensive countries in Europe.<\/p>\n Source: European Commission Weekly Oil Bulletin. National average consumer prices, including duties and taxes.<\/em><\/p>\n The figures also reveal a widening gap between neighbouring markets. National taxation and temporary government measures have created substantial cost differences inside the EU. Diesel in Finland cost approximately \u20ac0.60\/litre more than in Sweden at the end of August. The difference between Germany and Poland was about \u20ac0.56\/litre, while Dutch operators were paying approximately \u20ac0.46\/litre more than competitors in Spain.<\/p>\n In GWMI\u2019s assessment, these differences are now large enough to influence procurement and sales decisions across national borders. Sweden\u2019s comparatively small increase is partly connected to its decision to reduce fuel taxation. Poland also remains among the lower-cost large markets. Finland, Germany, France, Belgium, Denmark and the Netherlands now occupy the expensive end of the European market.<\/p>\n National fuel policy consequently influences mill competitiveness as well as household fuel bills. A sawmill cannot relocate its forests, but buyers can switch between European supply regions when delivered lumber prices diverge.<\/p>\n What the increase means for a timber truck<\/strong><\/p>\n Studies of Nordic timber haulage indicate that loaded roundwood trucks commonly consume approximately 54\u201367 litres per 100 km, depending on vehicle configuration, road conditions, gradients, payload and weather. An average close to 58 litres per 100 km provides a useful illustration of the current cost increase.<\/p>\n At the EU average, the \u20ac0.52\/litre rise recorded since December adds around \u20ac30 to the fuel bill for every 100 km driven by such a truck. A 500 km movement would cost approximately \u20ac150 more in diesel alone, before the operator\u2019s margin, empty running, loading time, tolls, wages and other expenses are included.<\/p>\n Global Wood Markets Info calculation based on consumption of 58 litres per 100 km and an increase of \u20ac0.52\/litre. Actual costs vary according to payload, empty running, road conditions and national fuel prices.<\/em><\/p>\n For a truck travelling 120,000 km annually and consuming 58 litres per 100 km, the same price movement represents approximately \u20ac36,000 in additional annual fuel expenditure. A fleet of ten comparable vehicles would face an increase approaching \u20ac360,000 if consumption and prices remained at those levels.<\/p>\n These figures do not translate mechanically into the same increase in freight rates. Transport companies may have purchased fuel under different conditions, and some contracts contain automatic adjustment clauses. Nevertheless, hauliers with fixed rates or delayed indexation are exposed immediately, while their customers encounter the increase when contracts are renewed or fuel surcharges are adjusted.<\/p>\n DHL Freight\u2019s European fuel surcharge rose to 17.5% for September 2026, compared with 7.5% a year earlier. The company\u2019s surcharge for domestic transport in the Netherlands reached 29.5%, against 19.5% in September 2025. The increases provide an early measure of how elevated diesel prices are moving from filling stations into commercial freight invoices.<\/p>\n Where the diesel increase enters the wood supply chain<\/strong><\/p>\n Forest operations are hit before the wood reaches the road<\/strong><\/p>\n Road transport is only one part of the diesel exposure. Harvesters and forwarders also consume considerable amounts of fuel, particularly on difficult terrain or during thinning operations. Higher diesel prices therefore increase the cost of producing roadside timber before a haulage company collects it.<\/p>\n The ability to pass this expense through the chain depends on local market conditions. Where mills compete for limited sawlog volumes, contractors and forest owners may obtain higher prices. In regions with weak demand or production curtailments, the additional cost may instead remain with logging businesses or transport companies.<\/p>\n Smaller contractors are particularly vulnerable. Their machinery and vehicles require substantial financing, while fuel must normally be paid for well before invoices are settled. A sharp rise in diesel prices increases working-capital requirements at precisely the moment when harvesting volumes may be reduced to match weaker mill production.<\/p>\n The consequences may not appear immediately in timber price statistics. Even when roadside sawlog prices remain stable, harvesting and transport capacity can contract if contractors cannot operate profitably. Mills may then encounter longer delivery times, smaller procurement areas or higher charges for short-notice transport.<\/p>\n Nordic sawmills lose part of their geographical advantage<\/strong><\/p>\n The problem is particularly acute in Finland, where long distances already make logistics a central component of industrial competitiveness. Diesel was almost 30% more expensive than at the end of 2025 and, at \u20ac2.33\/litre, the Finnish price was approximately 35% above the Swedish level.<\/p>\n Finnish transport and forest-industry representatives have estimated that a pre-VAT diesel price difference of around \u20ac0.40\/litre between Finland and Sweden would translate into approximately \u20ac500 million in additional annual expenditure for Finnish road freight and its customers.<\/p>\n For the sawmill industry, the higher cost appears on both sides of the mill gate. Logs must often be collected across wide procurement areas, while most production is sold outside Finland. Lumber then has to travel long distances to ports before being shipped to continental Europe, North Africa, the Middle East or Asia.<\/p>\n Swedish mills also operate over long distances, but cheaper diesel reduces their relative disadvantage. The difference can become visible in delivered lumber prices even when the two countries have comparable sawlog costs, exchange rates and production efficiency.<\/p>\n The same pattern applies elsewhere. Poland\u2019s lower fuel price gives its mills an advantage when competing with German producers, particularly in cross-border markets. Baltic exporters have lost part of their former cost advantage as prices in Lithuania, Latvia and Estonia moved closer to western European levels. GWMI expects these differences to become more visible in delivered lumber prices if diesel remains near current levels.<\/p>\n Low-value wood products face the greatest pressure<\/strong><\/p>\n The impact is not equal across product categories. High-grade timber and engineered wood products can absorb a larger transport cost in relation to their sales value. Pulpwood, industrial chips, bark, recycled wood, firewood and biomass are much more sensitive because transport represents a larger share of the delivered price.<\/p>\n A pellet producer collecting residues over an expanding radius may find that material previously considered economical is no longer viable. Panel plants competing for recycled wood can encounter the same problem. Pulp mills may have to pay more for distant wood or increase their reliance on rail and water transport where alternatives exist.<\/p>\n The increase can also redraw procurement areas. When diesel becomes more expensive, the economic radius around a mill contracts. Suppliers closer to the plant gain value, while remote forests become less competitive unless the roadside timber price falls sufficiently to compensate for transport.<\/p>\n For sawmills, the effect depends on log diameter, recovery rate and product mix. A large, high-quality sawlog can carry more transport cost per cubic metre of finished lumber than small-diameter or lower-grade material. Mills may consequently become more selective, increasing pressure on pulpwood and lower-quality assortments.<\/p>\n Export margins are squeezed from two directions<\/strong><\/p>\n European lumber exporters are paying more for inland freight while overseas buyers remain resistant to price increases. Construction markets in several major European economies are still weak, and exporters face competition from Russia, North America, South America and other supply regions.<\/p>\n A mill cannot automatically add the full diesel increase to its lumber price. If competing suppliers have lower raw material or logistics costs, the mill must absorb at least part of the difference through its margin. Production curtailments become more likely when sawlog, energy and transport costs rise faster than finished-product prices.<\/p>\n The pressure is not limited to overseas exports. European softwood moves extensively between Sweden, Finland, the Baltic states, Poland, Germany, Benelux, France, Italy and the United Kingdom. Diesel differences of \u20ac0.40\u20130.60\/litre can materially alter delivered prices on routes involving several hundred kilometres of road transport.<\/p>\n GWMI considers mills located far from ports, rail terminals and major consuming markets to be the most exposed. Importers may increasingly favour suppliers with access to efficient ports, rail connections or shorter inland routes, even when production costs at the mill are comparable.<\/p>\n Europe has crude oil, but too little diesel<\/strong><\/p>\n The current increase cannot be explained by crude oil prices alone. Europe is facing a shortage of refined middle distillates, with diesel prices rising faster than crude. The European diesel refining margin exceeded \u20ac85 per barrel in early September, reaching unprecedented levels in parts of the market.<\/p>\n Russian export restrictions, damage to refining capacity in Russia and the Middle East, lower shipments from the United States and constrained Asian exports have tightened supply. Industry estimates indicate that several million barrels per day of refining capacity or expected diesel output have been disrupted across Russia and the Middle East.<\/p>\n Europe has become more dependent on long-distance supplies from India and other refining centres. This exposes the market to tanker availability, freight rates and disruptions affecting the Strait of Hormuz, the Red Sea and other shipping routes.<\/p>\n Seasonal refinery maintenance could keep the market tight during the autumn. Winter demand for heating fuels will then compete with transport and industrial consumption for similar parts of the barrel. Even if crude prices stabilise, European diesel may remain expensive because the immediate constraint lies in refining and product availability.<\/p>\n Transport costs will not return evenly across the market<\/strong><\/p>\n The immediate question for wood companies is how quickly the diesel increase appears in freight rates. Spot transport reacts rapidly, while annual contracts may delay the adjustment. This creates temporary discrepancies between mills and hauliers, followed by sharper increases when contracts are renegotiated.<\/p>\n Larger companies can partly manage the exposure through indexed agreements, consolidated shipments, rail use and better backhaul planning. Smaller processors often buy transport on shorter terms and have less bargaining power. They may consequently face higher effective freight increases than the published diesel movement alone would indicate.<\/p>\n Wood companies with their own vehicle fleets are directly exposed to pump prices but retain greater control over routes, utilisation and procurement. Outsourcing removes the immediate fuel purchase but does not eliminate the expense: the cost returns through surcharges and higher contract rates.<\/p>\n Another increase is approaching through ETS2<\/strong><\/p>\n The present crisis is driven by supply conditions and geopolitics, but Europe\u2019s structural diesel costs are also set to rise. The EU\u2019s second emissions trading system, ETS2, is scheduled to cover road transport fuels from 2028.<\/p>\n Fuel suppliers will be required to purchase carbon allowances and are expected to pass much of the cost to customers. At an allowance price of \u20ac50 per tonne of CO\u2082, the additional charge on diesel would be approximately \u20ac0.13\u20130.14\/litre. The eventual price will depend on allowance values, national taxation and any compensation measures introduced by governments.<\/p>\n For the wood industry, ETS2 will arrive before electric heavy trucks are a practical replacement across much of the forest supply chain. Roundwood transport requires high payloads, long ranges and operation on forest roads where charging infrastructure is limited. The transition may progress faster for scheduled transport between large industrial sites than for timber collection from remote harvesting areas.<\/p>\n This means diesel will continue to determine European timber logistics costs for years, even as the regulatory cost attached to its use increases.<\/p>\n A new fault line in European wood competitiveness<\/strong><\/p>\n Diesel prices are opening another division within Europe\u2019s wood market. Mills with short procurement distances, rail access, efficient ports or favourable national fuel taxation are gaining an advantage. Those dependent on long road movements face higher delivered costs, smaller procurement areas and lower operating margins.<\/p>\n Finland offers the clearest example because long distances and export dependence magnify the impact, but the problem is European. German, French, Dutch and Belgian processors are also paying some of the continent\u2019s highest diesel prices. Baltic producers have seen steep increases, while Sweden and Poland currently retain a relative cost advantage.<\/p>\n GWMI expects transport costs to play a larger role in European timber and lumber purchasing decisions if diesel remains around \u20ac2\/litre. The price of moving wood will increasingly influence which forests are harvested, which mills can procure marginal timber and which suppliers win export orders. The next adjustment in Europe\u2019s wood industry may be determined less by factory efficiency or nominal sawlog prices than by the distance separating the forest, the mill and the customer.<\/p>","protected":false},"excerpt":{"rendered":" Diesel prices across the EU have risen by 34% since the end of 2025, adding hundreds of euros to long-distance timber movements and widening the cost gap between competing production regions. A new analysis by Global Wood Markets Info (GWMI) … Continue reading \n\n
\n \nCountry<\/th>\n Dec. 29, 2025<\/th>\n Aug. 31, 2026<\/th>\n Change<\/th>\n<\/tr>\n<\/thead>\n \n EU weighted average<\/td>\n \u20ac1.52\/l<\/td>\n \u20ac2.04\/l<\/td>\n +34.0%<\/td>\n<\/tr>\n \n Finlanda<\/td>\n \u20ac1.79\/l<\/td>\n \u20ac2.33\/l<\/td>\n +30.2%<\/td>\n<\/tr>\n \n Netherlands<\/td>\n \u20ac1.68\/l<\/td>\n \u20ac2.33\/l<\/td>\n +38.7%<\/td>\n<\/tr>\n \n Danemarca<\/td>\n \u20ac1.70\/l<\/td>\n \u20ac2.27\/l<\/td>\n +33.8%<\/td>\n<\/tr>\n \n Germania<\/td>\n \u20ac1.59\/l<\/td>\n \u20ac2.23\/l<\/td>\n +40.1%<\/td>\n<\/tr>\n \n Fran\u021ba<\/td>\n \u20ac1.56\/l<\/td>\n \u20ac2.21\/l<\/td>\n +41.6%<\/td>\n<\/tr>\n \n Belgia<\/td>\n \u20ac1.58\/l<\/td>\n \u20ac2.21\/l<\/td>\n +39.6%<\/td>\n<\/tr>\n \n Italy<\/td>\n \u20ac1.63\/l<\/td>\n \u20ac2.12\/l<\/td>\n +30.4%<\/td>\n<\/tr>\n \n Lithuania<\/td>\n \u20ac1.52\/l<\/td>\n \u20ac2.04\/l<\/td>\n +34.5%<\/td>\n<\/tr>\n \n Austria<\/td>\n \u20ac1.49\/l<\/td>\n \u20ac1.99\/l<\/td>\n +33.6%<\/td>\n<\/tr>\n \n Latvia<\/td>\n \u20ac1.48\/l<\/td>\n \u20ac1.95\/l<\/td>\n +32.2%<\/td>\n<\/tr>\n \n Romania<\/td>\n \u20ac1.48\/l<\/td>\n \u20ac1.94\/l<\/td>\n +31.3%<\/td>\n<\/tr>\n \n Estonia<\/td>\n \u20ac1.36\/l<\/td>\n \u20ac1.92\/l<\/td>\n +41.0%<\/td>\n<\/tr>\n \n Czechia<\/td>\n \u20ac1.34\/l<\/td>\n \u20ac1.90\/l<\/td>\n +41.5%<\/td>\n<\/tr>\n \n Spain<\/td>\n \u20ac1.39\/l<\/td>\n \u20ac1.87\/l<\/td>\n +34.4%<\/td>\n<\/tr>\n \n Sweden<\/td>\n \u20ac1.47\/l<\/td>\n \u20ac1.73\/l<\/td>\n +18.1%<\/td>\n<\/tr>\n \n Poland<\/td>\n \u20ac1.43\/l<\/td>\n \u20ac1.67\/l<\/td>\n +17.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n \n\n
\n \nTimber transport example<\/th>\n Diesel used<\/th>\n Extra fuel cost<\/th>\n<\/tr>\n<\/thead>\n \n 100 km journey<\/td>\n 58 litres<\/td>\n +\u20ac30<\/td>\n<\/tr>\n \n 250 km journey<\/td>\n 145 litres<\/td>\n +\u20ac75<\/td>\n<\/tr>\n \n 500 km journey<\/td>\n 290 litres<\/td>\n +\u20ac150<\/td>\n<\/tr>\n \n One truck, 120,000 km\/year<\/td>\n 69,600 litres<\/td>\n +\u20ac36,200\/year<\/td>\n<\/tr>\n \n Fleet of ten trucks<\/td>\n 696,000 litres<\/td>\n +\u20ac362,000\/year<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n \n\n
\n \nStage<\/th>\n Diesel exposure<\/th>\n Likely market effect<\/th>\n<\/tr>\n<\/thead>\n \n Harvesting<\/td>\n Harvesters, forwarders and service vehicles<\/td>\n Higher roadside production costs<\/td>\n<\/tr>\n \n Forest-to-mill transport<\/td>\n Loaded journeys, empty returns and forest-road operation<\/td>\n Smaller economical procurement radius<\/td>\n<\/tr>\n \n Primary processing<\/td>\n Movement of logs, chips, bark and residues<\/td>\n Lower recovery margins and pressure on low-grade assortments<\/td>\n<\/tr>\n \n Domestic distribution<\/td>\n Lumber, panels, pellets and finished products<\/td>\n Higher delivered prices and fuel surcharges<\/td>\n<\/tr>\n \n Export logistics<\/td>\n Road haulage to ports and intermodal terminals<\/td>\n Reduced competitiveness on distant markets<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n