Caps on wholesale gas prices in Sydney look set to be extended by the energy market operator on Tuesday to head off further spikes in prices as gas producers such as Santos’ GLNG venture and Beach Energy warned that government intervention to restrict LNG imports or control domestic prices would not address the real problem.

The limits on spot prices of $40 a gigajoule that were imposed by the Australian Energy Market Operator in Brisbane and Sydney after the failure of NSW gas retailer Weston Energy in late May were due to be lifted at the close of business on Tuesday.