Bord Na Móna has confirmed that the demand for peat briquettes in the first three months of the year was 47% higher than for the same period in 2012.
The demand has forced the company to put in place a contingency plan to manage stocks evenly among 5,000 wholesalers.
Michael Coleman of the Bord Na Móna briquettes division told RTÉ News that the company would normally have up to 50,000 tonnes of briquettes in stock at its factories in Derrinlough, Co Offaly, and Littleton in Co Tipperary.
He said reserves have now been reduced significantly, but the factories were both in a position to meet demands on a week-to-week basis.
There are a number of factors contributing to the shortage. Bad weather last year reduced peat harvest to just 37%, the worst in the history of the company.
There are also higher than normal moisture levels in the peat used in briquette production, leading to reduced output.
A fire in the company's factory at Littleton also caused a loss in production during the period of peak demand.
A number of wholesalers in the midlands have confirmed that they have been unable to receive large stock supplies of briquettes in advance and have had to contact Bord Na Móna on a day-to-day and week-to-week basis to have their supplies delivered.
The month of March saw an increase of 67% in the demand for stocks.