A new Government report released today has confirmed that the Albanese Labor Government has been unable to secure affordable gas for Australians, with supplies now on a knife edge while the cost of living crisis drags into 2025.
The ACCC’s (Australian Competition & Consumer Commission’s) December Interim Gas Report, released today, confirms that despite Labor’s rhetoric, Australia’s gas market is still suffering from shortfall risks and increased prices which have already seen gas bills soar by 36% since Labor took office.
Shadow Minister for Resources, Senator Susan McDonald, said that the report yet again confirmed the abject failure of the Labor Government to address gas prices, supply, and the cost of living crisis.
“This report confirms that current gas supplies are now on a knife edge and that gas prices are still at least double what they were under the Coalition,” Senator McDonald said.
“Southern states, like Victoria, are still in a shortfall, meaning that Queensland gas is having to do the heavy lifting just to keep the lights on.
“Declining gas production in the southern states means that stored gas, and gas delivered from Queensland, are playing an increasingly important role in meeting winter peak demand in the southern states.”
Shadow Minister for Climate Change and Energy, Ted O’Brien MP, said a 16 PJ shortfall in southern states by 2025 – 9% of demand – lays bare Anthony Albanese and Chris Bowen’s failure to secure long-term energy solutions.
“The ACCC report exposes Labor’s gas code as a failure, with producers delaying contracts for exemptions – fuelling uncertainty without lowering prices,” he said.
“Under Labor, household gas bills have skyrocketed by 36% and are now at record highs which is a far cry from the affordable energy Australians were promised.
“Buyers report that little gas is available and the prices of deals struck last year were double 2021 levels under the Coalition, which helps explain record high insolvencies across the economy.”
Further, the report confirms the failure of the Government’s interventions to address prices, with the ACCC stating “we therefore do not expect the Gas Code to have had a material impact on observed prices.”
“Not only has Labor failed to deliver supply security, but they have also failed to bring down power prices, with their own report confirming their policies have had no impact,” Senator McDonald continued.
“Three years of inaction under Labor has led to a severely damaged investment environment, with the uncertainty stopping any appetite for long-term investments in gas infrastructure.
“The need for increased domestic supply is pressing, but without the investment environment, supplies are dwindling.
Ted O’Brien pointed to Labor’s anti-gas approach as driving a lack of supply now and in future.
“The ACCC has made it clear that new domestic gas development is essential, yet Labor’s ideological hatred of gas has suffocated supply and this will only get worse as time goes on,” he said.
“As gas shortages continue and development stalls, prices will soar making Australians poorer as it gets more and more expensive to turn on the lights, heat the house and cook a meal.
“Australian industry will continue to close and their operations offshored, as our economy hollows out and we lose our sovereign capability in manufacturing.”
The Coalition has called on Labor to change course.
“With structural shortfalls expected from 2027, it is paramount that Labor reverse their anti-gas policies,” said Senator McDonald.
“Shockingly, despite southern states being in shortfall, the Victorian Labor Government has increased gas exploration fees by 300% – a shocking decision considering they desperately need Queensland gas.
“Victorians rely on gas not only for their electricity, but for their heating and their manufacturing industry – without gas, Victorian workers will suffer.
“This is yet another Labor fail from a Government who is anti-gas, anti-investment, and anti-jobs. All Australians will suffer from this weak Prime Minister.”
Mr O’Brien said: “Once we lose capabilities to overseas markets, it’s nigh impossible to get them back.
“Labor needs to drop its anti-gas crusade and change course immediately.” ENDS