‘Longer term’ confusion on gas price caps as market prematurely stabilises

There is a lot of confusion amongst energy producers about how the government’s price cap response is going to work “in the longer term,” according to The Australian’s Environmental Editor Graham Lloyd.

“The market seems to be stabilising,” Mr Lloyd told Sky News host Cory Bernardi.

“If you look at prices in Europe, where they were very, very high because of the interruption from supplies from Russia, that shortfall has been taken up largely by the United States.

“So gas prices in Europe are about 25 per cent of what they were at the peak and half the price they were in December.”

He said with the government’s further discussions on price caps to still continue, “the gas producers may just say ‘well, look, we’ll put our money somewhere else”.

There is a lot of confusion amongst energy producers about how the government’s price cap response is going to work “in the longer term,” according to The Australian’s Environmental Editor Graham Lloyd. “The market seems to be stabilising,” Mr Lloyd told Sky News host Cory Bernardi. “If you look at prices in Europe, where they were very, very high because of the interruption from supplies from Russia, that shortfall has been taken up largely by the United States. “So gas prices in Europe are about 25 per cent of what they were at the peak and half the price they were in December.” He said with the government’s further discussions on price caps to still continue, “the gas producers may just say ‘well, look, we’ll put our money somewhere else”.

Read Next