The Albanese government is weighing a return to aggressive market intervention, preparing temporary price caps on coal and gas to shield Australian households from a looming surge in electricity costs.
As conflict in the Middle East continues to destabilise global energy markets, internal contingency plans suggest a revival of the 2022 emergency framework, which previously mandated price ceilings of $12 per gigajoule for gas and $125 per tonne for coal.
Addressing the National Press Club on April 2, Prime Minister Anthony Albanese vowed to "pursue every option" to decouple domestic power bills from volatile international commodity prices.
While the government ruled out renewing the $6.8 billion rebate scheme that expired in late 2025, Albanese shifted focus towards sovereign resilience.
Under the ‘Future Made in Australia’ banner, the Prime Minister flagged the potential retooling of decommissioned oil refineries to bolster depleted domestic capacity.
Despite the high costs associated with meeting International Energy Agency fuel stock standards, the government is exploring biofuels and new technologies to ensure energy security.
The urgency follows a 20% spike in global coal prices—the sharpest rise since the Ukraine invasion—driven by a global pivot back to coal-fired power as the Strait of Hormuz remains throttled.
Although US President Donald Trump signalled a looming military withdrawal from the region, Minister for Resources Madeleine King warned that domestic gas shortfalls remain a critical threat.
The government is now considering export diversions to ensure local supply as the nation enters a precarious winter period.