The report shows that most commercial and industrial Australian gas users will pay more than $9 per gigajoule for gas this year, and some more than $11 per gigajoule.

Smaller commercial and industrial gas users who do not have the option of sourcing gas from producers, and instead rely on supply from retailers, face higher prices. Most have had to settle for prices above $10 per gigajoule, and some above $11 per gigajoule. 

The report notes that while gas export prices have declined significantly from highs seen in 2018, domestic prices have not yet fallen. 

The fact wholesale gas prices remain so high means many Australian manufacturers are struggling to compete internationally.

Victorian businesses have for too long faced uncertainty around gas prices and security of supply.

This report echoes recent warnings from the Australian Energy Market Operator that additional sources of Victorian gas are required to avert a crisis in gas supplies from 2024.

The need for action has never been more urgent, with manufacturers citing rising gas prices as contributing to local plant closures.

In releasing its report, the ACCC has supported the Victorian Chamber’s longstanding call on the State Government to lift the moratorium on onshore conventional gas exploration, set to expire in June 2020. A regulatory regime to manage the risks of individual gas supply projects on a case-by-case basis should be installed instead of the moratorium.