Sign up now
Australia Shopping Network. It's All About Shopping!
Categories

Posted: 2016-08-16 04:00:00

AUSTRALIAN households struggling with power bills are subsidising the cooking and heating costs of Japanese families.

It can cost more to fire up gas in a home here — about 65 per cent more — than in a Japanese residence that uses Australian gas, according to a survey by the Institute for Energy Economics and Financial Analysis.

The stark disparity in the cost of Australian-produced gas here and overseas will be on the agenda of energy ministers meeting in Canberra on Friday.

The survey provided to news.com.au found that, in July, gas produced in Australia was sold to households in Adelaide for an average of $13.90 per gigajoule, compared to $8.42 for the same product in Japan.

A similar comparison found Brisbane residents paid $10.12 per gigajoule, while those in Sydney paid $9.62.

On average, Australian domestic prices were 33 per cent higher in July than those for Australian-produced gas in Japan.

The gap was even greater in June, with Australians paying 62 per cent more for Australian gas than Japanese consumers.

The price difference and the extra burden on family bills will be discussed Friday at a meeting of energy ministers at the Council of Australian Governments Energy Council, the first under federal Energy Minister Josh Frydenberg.

The suggestion is that Australian households are subsidising gas exports at a time when a glut in the global market is expected to peg overseas revenue.

Options include reserving a proportion of gas production for domestic consumption, or encouraging greater production to lower prices. Neither measure has support.

Another proposal is to make details of actual production and long-term reserves more transparent to give authorities a better idea of how the industry is operating.

“But what is effectively happening is that gas producers are ensuring domestic gas supply in Australia is rationed and prices kept well above comparable gas prices in offshore markets,” investment analyst Bruce Robertson told news.com.au.

“A first step to counter this would be clear disclosure.”

Mr Robertson said gas was currently shipped at a cost of about $US0.75 per gigajoule, with liquefaction costs of about $US1.50 per gigajoule.

“Bearing in mind the high costs of transport and liquefaction, it makes no sense that Australian gas should be cheaper in Japan — one of the highest cost markets in the world,” he said.

“Australian consumers would be correct to question why this is the case.”

View More
  • 0 Comment(s)
Captcha Challenge
Reload Image
Type in the verification code above