Australia limits gas and coal prices

Australia is going to put a cap on domestic energy costs and spend around 1.5 billion Australian dollars ($1 billion) on energy bills. This decision is triggered by a surge in global commodity prices.

Natural gas prices on the domestic market are likely to hit 12 Australian dollars per gigajoule. Coal prices may stand at 125 Australian dollars per ton. This is reported by Prime Minister Anthony Albanese. This cap is set for the next 12 months. The government is also planning to support households in paying their bills. These subsidies are going to be transferred to regional budgets.

Albanese believes that urgent measures should be taken to slow down soaring prices within the country. Authorities in Australia will compensate manufacturers for the difference in case a fuel cost exceeds a fixed price range. However, this support is likely to vary from state to state, as there are several differences in their systems.