Australia’s latest $10m gas price scandal sparks questions about future of gas industry

Posted November 18, 2018 12:02:54 A major gas price scam has sparked fresh questions about Australia’s gas industry, with industry experts claiming a large number of gas stations were duped by the government and misled about prices.

Key points:Industry experts say up to 20,000 gas stations could be dupedThe gas price fraudsters used the same scam in the US and CanadaWhile the scam has raised new questions about the integrity of the Australian gas market, the ABC has spoken to gas industry experts to determine how widespread the problem is and what impact it has on gas stations and consumers.

The ABC understands more than 20,002 gas stations across Australia have been defrauded, with gas prices increasing by $1.45 a litre or $1 a litres from the mid-2017 to mid-2018 financial year.

Key point:Gas stations have been duped to receive higher gas pricesThe gas fraudsters also used the scam in Canada and the US, which raised gas prices by as much as $2.50 a liter or $2 a liters, depending on the type of gas.

Gas price fraud is common in Australia, with a number of instances involving the use of fraudulent information and deceptive advertising.

Gas stations and retailers have said they have not been impacted by the gas price increase, but have called for an investigation into how it occurred.

The gas industry is concerned about the impact the scam is having on consumers and the gas industry in Australia.

“It’s certainly something that’s going to impact the retail environment in a big way,” Andrew Walser, an industry analyst, told the ABC.

“What’s important to remember is that we’ve got a gas market that’s over 100 per cent competitive, that’s competitive in terms of the quality of the gas coming out of the ground.”

Gas stations are usually required to pay their own suppliers, with prices going up as a result of supply and demand changes.

Gas industry experts have questioned how widespread a gas price rise would be, and if it would be enough to force many stations to reduce prices.

The Federal Government has acknowledged that gas prices have risen by $2 per litre over the past two years, with some gas stations increasing their prices by more than $2 from mid-2016 to mid to 2018.

But Mr Walsers says gas prices will still go up by at least $1, which would affect the majority of Australian gas stations.

“Gas prices have been increasing since the mid 2000s.

We’ve been running at an annualised rate of about $1 per litres over the last three years, which is quite a lot,” he said.”

If you look at a price increase of $1 to $1 and $1 every year, you’re looking at a lot of changes.”

So, you know, it’s not just the price, but also the quantity of gas coming in, and the quantity going out of our gas system that’s being affected.

“Topics:gas-and-gas-production,government-and/or-politics,business-economics-and.energy-and the-environment,gas-industry,energy-resources,energy,industry-and_entertainment,australia,united-statesFirst posted November 18, 2019 12:04:51More stories from New South Wales

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