Combet warns of price gouging on refrigerant gases

The Minister for Climate Change and Energy Efficiency, Greg Combet, is concerned that prices being circulated by wholesale refrigerant gas suppliers show significant price hikes unrelated to carbon pricing. In many cases, these price rises have been similar in quantum across different wholesalers.

For example, the refrigerant R22 has no carbon price attached to it, yet one refrigerant gas supplier has hiked up prices for R22 by over $60 a kilogram. Another common refrigerant gas, R404A, has an equivalent carbon price of $75 per kilogram, yet an increase of $285 has been quoted as the supplier’s list price.

Combet has stated that wholesale refrigerant gas suppliers must explain their price increases and be transparent with the public and their customers about what costs they are actually passing on.

He also reminded customers that the use of refrigerants in consumer products is generally small with consequently small price impacts. For example, the price of a domestic fridge would increase by around $4 as a result of the equivalent carbon price, which is then accounted for in the government’s Household Assistance Package.

The government has given $12.8 million to the ACCC to crack down on businesses that seek to gouge their customers by making misleading claims about the impact of putting a price on carbon pollution and trying to hide other price increases. If suppliers make false carbon price claims they run the risk of breaching the Competition and Consumer Act and could be exposed to a $1.1 million fine for misleading consumers. Their directors and senior officers could also face fines of up to $220,000, as well as being disqualified from running a company.

Businesses and consumers with concerns about false carbon claims can call the ACCC hotline on 1300 303 609 or fill in an online complaint form. They can also consult the government’s fact sheet for assistance.