⛽️Rising oil prices directly increase equipment operating costs.
Diesel-powered pellet mills face increased costs: Many pellet mills (especially straw pellet mills) are dual-fuel (diesel-electric) machines, with diesel engines being a crucial power option. Increased diesel prices directly mean higher costs for using diesel engines to power pellet mills. Data shows that diesel accounts for 15%-20% of agricultural machinery operating costs; rising oil prices will significantly compress profit margins.
Raw materials and transportation costs are rising simultaneously: The transportation of raw materials (straw, wood chips, etc.) and finished pellets for pellet machines all rely on fuel. Rising oil prices will be transmitted to raw material purchase prices and finished product shipping costs, further squeezing production profits.