The government and the gas industry must take action to increase gas supply to the domestic market in order to lower prices, according to a new report from the Australian Competition and Consumer Commission (ACCC).
The competition watchdog released their latest report into the gas industry today, stating that while there would likely be enough gas to last through 2019, it would be priced two to three times higher than historical levels.
The ACCC said gas market conditions would remain “very challenging” adding that the organisation was working on improving transparency in the sector.
ACCC Chair Rod Sims said state governments need to reassess their current policies regarding gas developments to solve supply issues on the east coast.
“To improve market conditions, the east coast gas market requires a greater level and diversity of supply, a more efficient transportation network, and greater transparency,” he said.
“To lower prices in the southern states, lower-cost gas must be produced in the southern states.
“The ACCC continues to urge state governments to adopt policies that consider and manage risks of individual gas developments rather than implementing blanket moratoria and regulatory restrictions.”