The Price of Imported Gas is No Laughing Matter

Mar 25, 2022

The Price of Imported Gas is No Laughing Matter

Globally, the industrial gas supply industry is facing increased price pressure, particularly on imported products. For instance, the cost of imported nitrous oxide gas has increased by approximately 50% year-on-year.

A range of factors has contributed to this situation. There has been a 20% increase in the cost of gas cylinders, and a huge jump in the cost of shipping—The industry is experiencing 100% price hikes for some containers.

However, by far, the exponential rise in the cost of fuel is the key contributor to industry price pressure. Strong global demand for fuel (amid a faster-than-expected post-COVID-19 economic recovery), coupled with Russia’s invasion of the Ukraine, have seen fuel costs skyrocket. To put this into perspective, the national gas industry on average has been hit with a 4,000% increase in the fuel levy charged, and the basic fuel costs have increased 60% year-on-year.

The gas industry is not alone in these price increases. According to the Australian Bureau of Statistics (ABS), Australia’s import prices rose by 5.8% quarter-on-quarter in Q4 2021, on the back of a 5.4% increase in Q3. This was the fourth straight quarter of growth in import prices and the steepest increase since 2008.

Mega and its supplier Coregas are just as committed to minimising the impact of these price pressures however we expect that these factors will inevitably lead to increased prices to the gases we provide.