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Hundreds of Western Australian residents cop 25 per cent Supagas LPG gas bill increase amid Middle East market impacts

2 week_ago 27

         

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Gas bills will balloon by 25 per cent for hundreds of residents in Western Australia.

For many of the affected households on the Supagas LPG reticulated network in pockets of Perth, Albany and Margaret River, there are no alternative gas providers to turn to.

At Bayonet Head, in Albany’s northeastern suburbs, Sonia Rowe, 40, said she moved into a rental house unaware the sole LPG gas provider in the area charged significantly higher rates than she was used to.

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Her first bill in the new rental — covering cooking and hot water use for one person — was already double the average gas bill she was used to when living in Geraldton last year, coming in at just over $300 each quarter.

But Rowe learned last week her bills would effectively be going up by another 24.8 per cent from Monday.

“I just couldn’t believe it,” Rowe told 7NEWS.com.au.

“I understand gas prices have gone up but it’s just ridiculous.”

She said even before Monday’s hike her gas bills were “already the highest I’d ever seen in my whole rental history”.

“I’ll definitely have to make changes to my current lifestyle to put money aside.,” she said.

“I just can’t imagine how families are paying these costs.”

One solution involves transitioning to bottled gas but, as Rowe is a tenant, that decision falls to her landlord.

The Supagas reticulated LPG network is separate to the ATCO reticulated network which services the majority of Albany and which is being decommissioned over three years in a move set to impact about 8000 residents from next year.

Factors driving the hike

In a complaint response before the price hike on Monday, Supagas told Rowe the comparatively higher prices were due to reticulated gas network involving expensive infrastructure and operational costs.

The company said the 25 per cent increase comes after years of absorbing costs.

Instability in the Middle East and supply chain effects on the WA market are all part of the bigger picture.

“Supagas has maintained pricing for reticulated customers since November 2024 while absorbing significant increases in supply, transport and operating costs,” Supagas told 7NEWS.com.au.

“Unfortunately, those sustained cost pressures have now reached a level where a price adjustment has become necessary.

“The increase reflects higher wholesale LPG costs, increased transport and logistics expenses, and broader inflationary pressures affecting LPG suppliers across Australia. These factors are largely outside of Supagas’ control.

“Sustained increases across wholesale LPG supply, transport, logistics and broader operating costs have now reached a level where a price adjustment has become necessary.”

The company’s local LPG producer has also recently started importing gas “due to production constraints” which is also contributing to product cost increases, Supagas said.

Outside of state price regulation

These external factors are impacting all suppliers, but the Supagas reticulated LPG network is not price-capped like most gas networks in the state.

“The vast majority of WA households are supplied by primary gas networks, with prices capped by the state government,” the Department of Energy and Economic Diversification told 7NEWS.com.au.

“However, this price regulation does not apply to customers located in other gas networks in WA, including the Albany LPG system operated by Supagas.”

Supagas said the company “operates within the regulatory framework governing reticulated gas networks”. 

The Economic Regulation Authority still offers protections for these customers including “requiring retailers to provide flexible payment options,” DEED said.

“If a customer considers their gas retailer has acted unfairly or breached its obligations, they can first lodge a complaint with the retailer and, if unresolved, escalate it to the Energy and Water Ombudsman WA for independent review and resolution.”

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