Gas prices still rising for manufacturers

Samantha Read.

Samantha Read.

Chemistry Australia CEO Samantha Read has said that manufacturers in the Australian chemistry industry are not seeing an end to rising east coast gas prices due to a lack of understanding of how critical domestic gas is to job creation in the industry.

“While there has been some important Government action, the crisis is not over,” said Ms Read.

“If anything, there appears to be continued upward pressure both on the cost of gas and its delivery. Members are still reporting increases of between 30 per cent and 60 per cent in negotiating new gas energy contracts. Continued rises of this magnitude really are a question of survival. Demand destruction is not a solution to the gas crisis.”

Gas is particularly essential to the business of chemistry. It’s important for process energy, and it is also a non-substitutable ingredient for advanced manufacturing. The Australian chemistry industry uses 10 per cent of Australia’s domestic gas for its molecular properties to create a huge range of products essential to our everyday lives. These include fertilisers for our crops, cleaning products for health and hygiene in our homes and hospitals, and smart packaging to keep our food fresher for longer.

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