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- The consumer watchdog has revealed gas prices remained low for most Australian consumers last year, a welcome side-effect from COVID-19
- The Australian Competition and Consumer Commission (ACCC) has released its latest gas report, showing a drop in gas price to as low as $6 per gigajoule
- The fall in prices is being partially credited to lower oil and LNG spot prices, which have fallen during the pandemic
- However, domestic gas prices in Australia still remain above export prices
- The ACCC also warned of a potential shortfall in gas supply which may emerge on the east coast between 2024 and 2026
Australia’s consumer watchdog has revealed gas prices remained low for most consumers last year, a welcome side-effect from the COVID-19 pandemic.
The Australian Competition and Consumer Commission (ACCC) has released its latest gas report, showing a drop in gas prices over 2020.
Specifically, the ACCC states that prices fell from $8 to $14 per gigajoule during the second half of 2019 to $6 to $8 per gigajoule by mid-2020.
The fall in gas prices is being partially credited to lower oil and LNG spot prices, which have been brought down during COVID-19.
“The fall in gas prices is very welcome news for major gas users who, like many other Australian businesses, have faced enormous challenges in responding to the COVID-19 pandemic,” ACCC Chair Rod Sims said.
Despite the drop in prices, the consumer watchdog noted that domestic gas prices are still higher than export prices.
“We welcome the narrowing of the once-large gap between domestic and export parity prices, but despite some improvement domestic customers are still paying more than overseas customers,” Rod said.
“LNG producers have not provided an adequate explanation as to why this is the case, or why we should accept it,” he added.
The ACCC also flagged a potential shortfall in gas supply, which may emerge on the broader east coast between 2024 and 2026.
“It is concerning that the risk of a gas supply shortfall in Australia’s southern states continues, despite this having been a looming issue for some time,” the ACCC chair stated.
“There are new sources of supply and related infrastructure that could be brought online to avoid a potential shortfall,” he explained.
“It is crucial that investment decisions are made now to ensure there’s enough supply, and to provide downward pressure on future price rises,” he concluded.
