from the oz today The threat of federal government intervention...

from the oz today

The threat of federal government intervention in gas prices has been substantially dialled back, to the relief of major producers such as Santos, but the move has caused concern among big users, setting the scene for a fresh battle within the east coast market.The government is keen to encourage the development of new gas supplies to put downward pressure on gas prices in the market. However, the risk of government intervening to keep the price within a specific ceiling or floor is of huge concern to producers, who are reluctant to invest hundreds of millions of dollars without certainty.While the Prime Minister has recently signalled the government would not intervene on prices, gas producers have been concerned that Energy Minister Angus Taylor, whose mission is to keep consumer prices low, was not of the same view and may force price controls on the industry.However, Mr Taylor confirmed that he did agree with the Prime Minister that the market should drive prices.