The fact that Australia
is now increasing its gas production should be a benefit for Victorian gas
customers and Victorian manufacturers, not a hardship. But because most of our
gas is now to be exported, rather than being sold locally, gas prices for eastern
states manufacturers are now rising to international gas prices – from $4 to $5
a gigajoule to $10 a gigajoule.
In New South Wales AGL
and Origin Energy have asked the Independent Pricing and Regulatory Tribunal to
let them increase retail gas prices by 20%. This kind of increase would pose
massive hardship for pensioners and others on fixed incomes, and it should not
be allowed.
And the Federal
Government has a role too. Every other large gas producing country puts
measures in place to ensure domestic consumers benefit from rather than suffer
from, their natural wealth. The US, home of the free market, barely lets gas
producers export at all!
Consumers are already
struggling under the weight of electricity bills which have more than doubled
in 10 years. Gas bills should not be allowed to do the same.