Australia's gas prices continue to soar, and politicians and experts have reiterated that the country is in a difficult position, with no easy way out of the crisis. But how exactly did this happen and can anything be done about it?
According to the Australian Energy Marker Operator , wholesale energy prices were up 141 per cent in the first quarter of 2022 compared with last year.Australia's gas prices - particularly on the east coast - continue to soar, and politicians and experts have reiterated that the country is in a difficult position, with no easy way out of the crisis.
"The problem is on the supply side, there have been coal production outages, and natural gas could normally come in and fill in for coal, but gas is in short supply as well, because there just isn't enough to satisfy domestic requirements and to meet export obligations." Internationally, gas prices are being impacted by a range of factors, with the major trigger being Russia's invasion of Ukraine.
"So that's bringing prices up in that region and because the markets are connected, we feel it here at home as well." While the Labor government has been pressed on the issue since taking office following its election win in late May, energy minister Chris Bowen has said there is "no silver bullet" when it comes to the gas crisis.
Samantha Hepburn, professor of energy law at Deakin Law School, said Australia should adopt a national reservation policy similar to Western Australia, which preserves 15 per cent of liquefied natural gas for the domestic market.
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