This report summarises the Coalition's suite of gas supply and pricing proposals and provides an independent assessment of the immediate effects on any new gas sales on wholesale and retail prices on final gas customers. It also outlines the impacts on electricity prices.

A number of measures were announced by the Federal Coalition to improve the availability and pricing of gas supplies on the east coast of Australia where prices have been high and volatile. These announcements will achieve three main things:

1. increasing the supply of gas to the domestic market
2. ensuring gas can be transported where the market needs it
3. decoupling the domestic gas market from the volatile international gas market to provide long term stability for businesses that use gas and for residential gas customers.  

Key findings

• A key reason domestic gas consumers are paying high prices for gas on the east coast of Australia is because gas producers can earn higher profits by selling the gas all Australians own to international customers.
• It would be expected to result in a 15% reduction in retail gas bills for industrial customers.
• It is expected to result in a 7% reduction in retail gas bills for residential customers.
• It would ultimately be expected to lead to a reduction in residential electricity prices of around 3%.