(from AFR just in)
Industry in shock as Vic gas prices hit record levels

Gas prices in Victoria have take another huge leap to record levels of about 10 times average levels, fueling urgent calls for the federal government to pull the trigger on its domestic gas security mechanism.

Wholesale prices surged to an unheard-of $58.44 a gigajoule in Victoria for a four-hour period on Friday, shocking manufacturers and raising the likelihood of plant shutdowns among those exposed to spot prices.

The spike in prices extended big increases earlier this week driven by a combination of cold weather, reduced production at the eastern states largest domestic supply plant and rapidly diminishing stores of reserve gas.

Gas prices on the east coast have rocketed to record levels, leaving industrial users in shock. Bloomberg

Prices were slightly lower in Sydney at almost $30/GJ and about $20 in Brisbane and Adelaide. Earlier this year, prices in most states were trading in the $5-$6/GJ range.

“This is an absolute disaster,” said one manufacturer and gas wholesaler, calling for the Australian Energy Market Operator also to step in and cap prices.