The price of wholesale firewood has more than doubled since late last year, threatening to burn a hole in consumers' pockets if the costs are passed on.
However, local firewood merchants say they will keep the heat off their prices for as long as possible.
Phoenix Firewood owner Howard Baker said firewood sellers now paid about $78 a tonne for pine compared with $38 late last year.
The price rise has been fuelled by strong overseas demand for low-grade wood as mainly Indian and Chinese companies seek cheap wood for timber.
Mr Baker said in the 15 years he had been in business, this was the first time he had seen such high prices.
Mr Baker currently sells his pine at $150 for three cubic metres and said putting the price up would be a last resort.
"I'm hoping it wouldn't go that far."
He said he worked 12 months in advance and had stockpiles at the moment, but was concerned prices would remain high.
"If it carries on for another eight or nine months I won't be [all right]."
"Worst-case scenario, if I run out, I might have to cut down my own trees."
Mr Baker said he had not yet bought any firewood at the $78 price: "I can't pay that much. I just can't."
Marlborough Firewood owner Murray Menzies said he was worried about the increase in the price of the wood.
"It's a bit of a worry, to be honest. If the price rises too much, people won't buy it and I've still got a mortgage and bills to pay."
Mr Menzies had raised his prices from $135 to $145 for three cubic metres of pine. He was reluctant to pass the costs onto customers, but conceded he must also "watch our bottom line".
Marlborough Forest Industry Association chairman Kevin Parkes said export demand, particularly from India and China, was stoking the price rise.
Other countries' tariffs on wood products also made the non-tariffed New Zealand wood a cheaper option.
Mr Parkes said the industry had been struggling with low returns for several years and the increased demand had sent prices "through the roof", which was good for the timber industry as a whole.
"The demand for chip wood worldwide has increased dramatically. Two years ago it wasn't like this, even six months ago."
By SIMON WONG - The Marlborough Express
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