Peter Dutton’s gas reserve plan to save Aussies 15 per cent, report finds

Brick factories, steelmakers, food producers and other industrial gas users would be big winners under the Coalition’s plan, independent analysis has found.

Brick factories, steelmakers, food producers and other industrial gas users would be paying 15 per cent less if the Coalition’s plan to create a reserve just for Australian customers was already in place this year, independent analysis has found.

After days under pressure to release the modelling behind his domestic gas reserve policy, Peter Dutton has revealed businesses would already be saving money if the policy had been implemented since February, according to figures produced by Frontier Economics for the Coalition.

“If these decoupling was in place as of February this year, I can announce today that gas prices would have been 15 per cent cheaper domestically,” he told The Daily Telegraph’s Future Western Sydney event.

“The beauty of making sure that we get it right in relation to energy policy, is that all Australians win when we increase the supply of gas and we decrease the cost of gas across the economy.

“It’s food manufacturers, it’s heavy industry, huge employers across the economy.”

Peter Dutton claims the Coalition plan would save Aussies. Picture: Thomas Lisson/NewsWire

A week ago Mr Dutton said the modelling showing how his gas plan would reduce electricity prices for Australian businesses and households would be released “soon”.

Asked on Friday how long before voters would have the answer, the Opposition leader said the modelling was “almost here”.

“Be patient,” he joked to journalists.

“The anticipation is building up.”

The 15 per cent saving for industrial users, which accounts for supply charges and other costs beyond the wholesale price of gas, is the first snippet of information released from that modelling.

Mr Dutton said the Coalition’s energy policy would “over the long run” be much cheaper than Labor’s.

Frontier Research managing director Danny Price said the “decoupling” of Australia’s gas supply from the international market would shield domestic customers from price shocks overseas, such as the war in Ukraine.

“Based on current estimates this will incentivise supply to the domestic market of between $9 to $10 a gigajoule for new sales of gas, which is about 30 per cent lower than current wholesale prices prevailing in the market,” he said.

“Under current market conditions, if an average industrial gas buyer struck a deal under the decoupling scheme with $10 prices at the gate, their overall gas price – that is, including all costs – would be around 15 per cent lower than without the decoupling scheme.”

Mr Price said the Coalition’s policy provides “long term secure access to affordable gas, which prepares us for a balanced mix of renewables and on-demand generation based on nuclear power”.

Originally published as Peter Dutton’s gas reserve plan to save Aussies 15 per cent, report finds