Gas prices have continued to fall sharply further easing pressure on Australian households and industry, according to the latest Australian Competition and Consumer Commission (ACCC) Gas Inquiry report.
The ACCC Gas Inquiry 2017-2025 January 2021 report found prices offered by producers and retailers for 2021 supply in the domestic market fell significantly over the first half of 2020, representing a significant shift in market pricing.
Prices offered by gas producers fell from $8-10/GJ in late 2019 to $6-7/GJ in mid-2020. Over the same period, prices offered by retailers fell from $8-14/GJ to $6-8/GJ.
Average prices under gas supply agreements (GSAs) for commercial and industrial customers also fell below $8/GJ. This marks the lowest quantity-weighted average prices for GSAs since 2016.
The ACCC report also confirms that there will be sufficient supply to meet export and domestic demand through 2021.
Gas exporters are likely to produce 21 petajoules (PJ) of gas above their contractual requirements in 2021. Under the Government’s renewed Heads of Agreement, this gas must be first offered to the domestic market on competitive market terms.
The Minister for Energy and Emissions Reduction, the Hon Angus Taylor MP said, ‘Improving the competitiveness and transparency of the gas market through our comprehensive plan will benefit the entire Australian supply chain – from the supplier to the stovetop. All industry players need to work together with us to achieve this goal.’