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Higher gas prices a major threat for Australian industry

gas pipeline stock image

“Ai Group is very concerned at the direction of forward gas prices released by the ACCC showing a rising trend for forward gas prices in 2019,” Ai Group Chief Executive Innes Willox said.

“Continuing higher gas prices are a major threat to the viability of a wide variety of Australian industries as well as to household budgets.

“All Australian governments should be mindful of these rising pressures and re-examine the impacts their own policies are having on current and future gas supply. This is particularly the case for state and territory government policies that continue to restrict the development of domestic gas fields.

“The NSW and Victorian governments are excessively wary of permitting the development of gas fields that would satisfy appropriately strict environmental standards. They should reconsider current blanket restrictions which have a devastating impact on gas supply and instead adopt a more science-based approach to approvals for new gas fields.

“Such an approach would provide welcome assistance in easing current supply constraints and exert downward pressure on domestic prices for industry and households. A review of blanket bans on gas development is increasingly necessary at a time when Australian industry faces an array of cost pressures which impact on investment and job creation,” Mr Willox said.

Source: Ai Group

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