Australian PM Says Gas Price Cap Is on the Table Amid Soaring Energy Prices

Australian Prime Minister Anthony Albanese speaks during a meeting at Parliament House in Canberra, Australia, on Oct. 18, 2022. (Lukas Coch-Pool/Getty Images)

Australian Prime Minister Anthony Albanese has said that capping gas prices was one of the options his government could consider in dealing with energy price hikes in the country.

Speaking to Sydney radio 2GB on Nov. 11, the prime minister refuted speculations about a super profits tax on gas and coal while emphasising that renewables were Australia’s solution to achieve low energy prices and carbon emissions.

He also dismissed media reports that the federal government would introduce a “mining tax” and use the revenue to support households, saying that it was a speculation.

In addition, Albanese said a gas price cap was under consideration and that the federal government would constructively work with the state governments of Queensland, New South Wales and Victoria on the issue of energy prices.

“All sensible measures remain on the table. We’re working these things through, including talking with the industry themselves,” he said.

“But we need to provide relief ... you have extraordinary profits being made at the same time as households and businesses, particularly manufacturing, are under pressure.”

The Royalla Solar Farm as seen in Canberra, Australia, on June 28, 2016. (Lisa Maree Williams/Getty Images)

At the same time, the prime minister doubled down on Australia’s commitment to renewable energy while backing the belief that renewables were the cheapest form of power, saying that “every economist in Australia” and every state government believed the same thing.

Albanese also refuted the idea that the government was demonising coal and gas, which affected investments in those areas.

“There has been nothing under the former government or right now to stop someone coming forward with the proponent for a new coal-fired power plant,” he said.

“You have a shortfall in the market as a direct result of the failure of the former government, which is why the business community is saying very, very clearly across the board ... they all welcome the new government policy on these issues, which is aimed at providing that investment certainty.”

Coal and Gas Industries Object Extra Taxes

Meanwhile, there have been objections to the idea of placing additional taxes on coal and gas companies to bring energy prices down.

Mining Council of Australia CEO Tania Constable said it would be unreasonable for the government to go ahead with any proposed tax on the coal and gas industry.

“It’s a very short-term fix, not sensible to put at risk our investment in Australia, our jobs in Australia and what industries are doing with communities,” she told Sky News.

“It’s not sensible for the government to put another big tax on an industry that’s been holding up the economy for quite some time.”

The prime minister’s comments come after the Treasury Department voiced its support for government intervention in the energy market to reduce prices in a Senate hearing earlier this week.