The Morrison government remains determined to do all it can to reduce gas prices, Assistant Treasurer Michael Sukkar says.
But the gas industry has warned that government interventions rarely result in better long term results.
Gas prices have been an issue for the Centre Alliance party in its discussions with the government on its income tax plan, which is expected to be high on the agenda when the parliament sits next month for the first time since the federal election.
Centre Alliance senator Rex Patrick argues that while he supports the idea of lower taxes, he doesn’t want to see this relief consumed by higher energy prices.
“The government is absolutely determined to do what we can to reduce gas prices,” Mr Sukkar told Sky News on Sunday.
He said the government has already worked hard is to ensure domestic gas prices are reduced.
In 2017, Australia’s biggest gas companies agreed to boost supply to the east coast to stave off an energy crisis.
Mr Sukkar said gas prices were quite significantly reduced in a short period of time.
“No one can argue against … lower domestic gas prices,” he said.
But Shell Australia head Zoe Yujnovich has warned against government intervention to reduce prices.
“There has rarely been a circumstance where there has been intervention by governments in the markets where the markets have ultimately been better for that intervention,” she told Sky News Business Weekend program.
“We will always see peaks and challenges, energy is not immune to that.”
She said an intervention on the price of gas may compromise future investment to bring those gas molecules to the surface and their delivery to customers.
“So we have to be really careful of those unintended consequences of any short term intervention,” Ms Yujnovich said.