Gas prices to surge, could double “in two or three years”
Victorians are in for a shock over the next two to three years with the cost of gas set to skyrocket.
A report from the ABC highlights the international pressures that will force domestic gas prices to rise and hurt Australian pockets. Projects from Santos, Shell and Exxon Mobil will all come online later this year. Although primarily for export to foreign markets, the presence of these players will likely increase the wholesale price of gas.
Australia has been largely shielded from the international gas market, enjoying prices far lower than those seen throughout Asia. Analyst Peter Strachan predicts the worst for domestic customers.
“The spot price in Asia is $19.50 a gigajoule. The domestic price for gas in NSW at the moment is about $5 per gigajoule … I think that people have got to get prepared to be paying $9-$10 per gigajoule for gas in two or three years’ time. That’s twice the current price.”
Those hoping for a rollback of the carbon tax to deliver savings are likely to be disappointed. After exaggerating the influence of the carbon tax and renewable energy target on household bills (estimated by the ABC fact checkers to be $15 per year) the Prime Minister stands by the gas industry that is now set to launch those same bills skyward.
Today in NSW the Independent Pricing and Regulatory Tribunal (IPART) will announce whether AGL and Origin Energy will be granted permission to increase their retail gas prices by 20 per cent. Origin have abandoned investment in renewables and doubled-down on gas, not only attempting to bolster their fossil fuel profile (including a $24.7 billion investment into a gas project in Queensland) but their attempts to strangle renewable energies raised the ire of renewable advocacy groups.
After the ACT, Victorian customers consume the most gas compared to their northern counterparts. Long, cold winters encourage us to crank up our heaters and enjoy long, hot showers to cope with conditions.
Gavin Dufty from St Vincent de Paul says the price rise of $140 and $300 per annum is an unwelcome addition to already over-burdened family budgets. Those juggling their bills, hit by rising cost of electricity, water, school and health costs, could now face tough decisions regarding heating and limiting necessities like hot showers.
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