Gas prices in Australia are rising so quickly that they’re costing households around $300 a year, the National Energy Agency says.
Gas prices are rising faster than inflation, and there are now more than 4,000 non-electrical outlets, or stations, in Australia, which have added a price of around $600 a year to the cost of gas.
NEMA has found that gas prices in Victoria are rising by more than 30 per cent in just two years.
The figures were revealed in the Federal Budget this week, which included a promise to make it easier for households to access gas, and also a promise by Labor to make Australia a “gas free” nation.
“It’s clear that the gas industry has been hit hard,” said NEMA’s director of energy markets and policy, Steve Wightman.
“[It] has been able to withstand the economic impact of a major natural gas price shock, but the effect on households has been significant and the cost has increased.
It is not clear how much of this has to do with the fact that Australia is no longer an exporter of natural gas.
There’s been some improvements, but it is not enough.”
The NEMA report shows that gas is the cheapest fuel on the market.
That is, the price that gas will cost for consumers is higher than the price of other fuels.
As the economy recovers, gas prices will continue to rise.
But the gas boom is still being driven by the gas-fired generators, which are responsible for almost 70 per cent of Australia’s electricity.
What is the gas supply?
The gas supply in Australia is supplied by gas-burning generators, mostly coal-fired, and it has been a problem for many years.
Energy experts say coal-burning is more expensive, because it has to be extracted and transported.
In 2012, the cost for coal-based electricity in Australia was $6.3 billion, compared to $2.7 billion for gas.
But gas is cheaper, because gas is generated from coal and there is less demand for electricity when the price is low.
So the supply of gas is still very much dependent on the prices of coal and gas.
Gas has been the cheapest available fuel in Australia for many decades, and has been an integral part of the national energy supply.
How much gas is left?
In 2018, the NEMA reported that about 1,100,000 Australian households had enough gas to meet their needs for two months.
There are still about 5,500 households in Australia who are paying about $300 per year for gas, which is less than half of what they would have been paying had they switched to gas-powered generators.
Some gas is sold to other Australian states and territories, which can be bought with the money saved on electricity bills.
But many Australian households are paying a higher price than the average price of gas in other states and are paying much higher rates for gas than they would for electricity.