Montenegro’s government ordered an urgent review of pellet production and distribution at its 5 November cabinet meeting, after supplier Mikro Mont warned that production and raw-material procurement problems could jeopardize deliveries under a school fuel contract worth up to 1,175,900 euros including VAT, according to the government’s account of the meeting. The review comes as the supply warning raises questions about maintaining heating services in educational institutions.
Mikro Mont, based in Bijelo Polje, notified the government that difficulties obtaining raw materials were affecting production and putting the continuation of contracted deliveries at risk. The Ministry of Education, Science and Innovation selected the company through a public procurement procedure conducted in March 2026, and the supply contract was signed on March 23.
The government instructed the responsible ministries to examine measures to maintain pellet production, procurement and distribution while protecting the public interest and suppliers’ commercial interests. The warning does not mean the agreement has been terminated, and its maximum value does not establish that the full amount has been paid. The government must determine whether deliveries can continue, whether substitute supplies are needed and what remedies are available under procurement rules.
The review comes amid wider concerns about Montenegro’s domestic pellet market. In September, the government capped retail prices at 250 euros per tonne for A2 pellets and 270 euros per tonne for A1 pellets. Agriculture and Forestry Minister Vladimir Joković proposed restricting exports to increase domestic availability during the winter heating season, but no final export prohibition was confirmed in the decision under review.
The government’s account noted that market disruption can affect public procurement as well as household access to pellets. Producers face costs for timber inputs, processing, packaging and transportation, while public institutions require dependable fuel supplies through winter. The immediate priority is maintaining heating services in schools while addressing supply constraints without further disrupting domestic production.
