Securing Australian Gas

April 27, 2017

Bill Shorten is once again deliberately misleading Australians. Either that or he does not understand Australia’s gas market.

This is what he tweeted today at 11.49 am

“At 830am, Turnbull said gas prices should be halved.
At 1130am, he said gas prices won't be halved.

This morning in a discussion about the cost of gas for industry the Prime Minister was asked this:

Steve Austin: So it will be comparable but not necessarily cheaper - for industry in Australia?

PM: Oh, no, it will be cheaper than the prices that are being offered now. People are being offered prices of $20 a gigajoule, it should be around half that or less.”

In other words the PM said that wholesale prices for industry should be around half of $20 -  $10 - or less a gigajoule.

When he spoke to the media at 11.30am, the PM repeated that point and said:

A wholesale price and I stress this is a wholesale price for gas in Australia today, if it was based on the export price would be less than half $20 [a gigajoule]. Now this is not saying all gas prices will be halved as a result of these changes….if you’re a family the wholesale price of gas is between 15-20% of the cost of your gas bill because the gas company obviously has...a whole pipeline distribution network and many other costs also.”

When it comes to household gas bills, the ACCC has found that the wholesale price of gas is around 15-20% of the gas bill, the balance being taken up with other overheads including the cost of distribution. So households will also benefit from our reforms.

And the Government earlier secured a guarantee from the gas producers to make gas available to electricity generators at times of peak demand - securing reliable electricity on those 40 degree days. The Turnbull Government is delivering reliable and affordable gas to support Australian jobs and Australian families.

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