LMTC said:What the heck do you mean? They "can" raise the prices anytime they want....whoever "they" are.
Specifically, why sell for $3.00 a bag when the oil prices are so high? A distributor can easily charge more to the dealer, who sells them for $5.00 a bag and sells all he can. They (manufacturer/distributer) don't need to be as inexpensive as they once were. People will easily pay much more. If the pellet stove sales drop off and thus pellets sales also drop off, the market prices will come down. I do doubt manufacturing costs have gone up as fast as the retail price of the pellets has gone up. To sell for less would possibly leave money on the table. People are looking for options to oil and the pellet producers are gladly providing one.