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Australia caps gas and oil prices for a year, sparking outrage from energy sector
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Australia’s energy firms say the new price caps will discourage investment in the sector which will reduce supply.
PHOTO: NYTIMES
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SYDNEY - Australia has imposed temporary caps on domestic oil and gas prices to try to combat spiralling prices, but the move has sparked a furious response from energy firms that say it will discourage investment in new projects.
Gas and electricity prices have been soaring in Australia, even though it is one of the world’s biggest suppliers of gas and coal. The spikes have been caused by rising international prices since the war in Ukraine, as well as a failure by the federal and state governments to lock in enough gas supply for domestic use, which has led to local shortages.
