Gas bills are set to balloon by 25 per cent for hundreds of residents in Western Australia, particularly those on the Supagas LPG reticulated network in pockets of Perth, Albany and Margaret River. For many affected households, there are no alternative gas providers to turn to.
Residents Shocked by Rising Costs
Sonia Rowe, 40, a resident of Bayonet Head in Albany’s northeastern suburbs, moved into a rental house unaware that the sole LPG gas provider in the area charged significantly higher rates than she was used to. Her first bill in the new rental, covering cooking and hot water for one person, was already double the average gas bill she paid when living in Geraldton last year, coming in at just over $300 each quarter. However, Rowe learned last week that her bills would effectively increase 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 added that 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.”
Limited Options for Tenants
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 from the ATCO reticulated network, which services the majority of Albany and is being decommissioned over three years, a move set to impact about 8,000 residents from next year.
Factors Driving the Hike
In a complaint response before the price hike on Monday, Supagas told Rowe that comparatively higher prices were due to the 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.” The company’s local LPG producer has also recently started importing gas “due to production constraints,” which is also contributing to product cost increases.
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.”
