Why are Victorians choking on gas bills?

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Victoria’s household gas prices have jumped 208 per cent since 2009, the biggest increase in Australia.

New analysis of St Vincent de Paul Society and Alviss Consulting’s annual tariff tracker shows Victorians are the most exposed to long‑term gas price inflation with prices soaring far above the national 134 per cent rise.

…According to analysis of Essential Services Commission data, a record average of $1,815 was outstanding on unpaid gas bills.

The rising cost was also taking its toll with the number of customers seeking assistance with their gas bills each month also reached a new high of nearly 80,000 in the first quarter of 2025–26.

Opposition spokesman for energy David Davis the Allan government had made mistakes on gas in the past, which was resulting in skyrocketing costs.

“The Victorian government’s war on gas, and its refusal to grant permits for onshore gas exploration over the past 11 years has left families and business paying more,” he said. “Over the last year gas and electricity prices increased in all jurisdictions, with gas prices up the most.”

Can the Victorian opposition please point out the gas that should be extracted? There are no known reserves. They may be there. They may not be.

We should certainly find out, but this is not why Victorians are paying more.

In fact, Victorians have every right to feel aggrieved that they are not being supplied enough gas by other states.

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For more than fifty years, VIC supplied NSW, SA and TAS with gas. Much of this occurred after 2000, as the pipeline network expanded.

The QLD gas export cartel has also shipped VIC gas offshore.

Here is an estimated chart of VIC gas exports versus its own consumption.

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In short, if VIC had behaved as QLD does today and refused open access to its gas for other states, it would still have many decades of very cheap supply left for itself.

Accusing VIC of being a gas bludger is like accusing Newcastle of being a coal bludger.

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Victorians are paying more than everybody for gas today because:

  • It uses more of it.
  • It is furthest from it.
  • QLD prefers to ship it to China.

And nobody is going to do anything about it, least of all Albo.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.