This report provides an economic analysis of the high gas prices in Australia, focusing on the period from 2018-2019. It begins with an introduction that highlights the impact of high gas prices on local manufacturers, citing a Reuters article. The report then describes the liquefied natural gas market in Australia, identifying key players and characterizing the market as an oligopoly. An economic analysis follows, attributing the price increase to supply-side factors such as exports, reduced exploration expenditure, and drilling bans. The analysis utilizes supply and demand diagrams to illustrate the impact of these factors on equilibrium price and quantity. Furthermore, the report examines the decline in consumer surplus resulting from the price increase, using a graphical representation. Recommendations are provided, including the removal of regulations hindering gas exploration, infrastructure development, and enhancing competition within the gas industry. The report concludes by summarizing the key findings and reiterating the need for government intervention to ensure a stable domestic supply of gas. The report is properly referenced using the Harvard style.