RISING gas prices will hit Melbourne and Sydney hard, and Queensland consumers who use much less than those in southern states can still expect to pay an extra $65 each year.
That was the message from a Grattan Institute report on changes in the gas market, which was released on Sunday.
The report found as domestic gas prices rose from $4 a gigajoule to an expected $9 a gigajoule price, in line with global prices, consumers would pay more.
But the price increase, the report showed, would be vastly different from state to state, with Melbourne households to face an extra $300 a year on their gas bills.
In Sydney and Adelaide, consumers can expect about an extra $100 on their gas bills, while Queenslanders, who use less gas but more electricity, can expect a $65 increase.
However, gas prices have already risen 36% in the past five years, while electricity went up a whopping 61%.
Grattan Institute energy program director Tony Wood said despite the increases, the massive amount of gas being readied for export should not be reserved for domestic consumption.
He said such moves would "add more costs than benefits and do nothing to increase supply".
However, Australian Workers' Union national secretary Scott McDine said there was "no such thing as a free global market when it comes to gas".
"Because every gas-exporting nation, aside from Australia, has some form of gas reservation or national interest test, the global gas price is distorted and pushed extremely high," he said.
"Why should Australia be voluntarily subjecting itself to this distorted global price?"
- APN NEWSDESK