Australia’s leading manufacturers have warned that the country’s “broken” east coast gas market could cost thousands of jobs and undermine the federal government’s Future Made in Australia policy.

Speaking at the National Press Club in Canberra, BlueScope Steel chief executive Mark Vassella said the nation risked repeating the United Kingdom’s industrial decline if gas prices were not brought under control.

“Australian manufacturing is at a dangerous crossroad,” Mr Vassella said. “Major change is required to fix our broken gas market and reinstate a fair domestic price. If we can’t, we face a decline similar to that of the UK steel industry.”

Mr Vassella, representing industry group Manufacturing Australia, called for an east coast gas reservation policy and a $10-a-gigajoule price cap to ensure affordable supply for domestic manufacturers. The group argues that reserving one-third of current production would meet domestic and residential needs while maintaining export volumes.

Despite Australia’s vast gas reserves, manufacturers pay some of the highest prices in the world — averaging $10.30 a gigajoule last year, compared with $2.20 in Qatar and $3 in the United States. “Local gas users are effectively paying for export infrastructure they don’t use,” Mr Vassella said. “It puts Australian industry at a structural disadvantage.”

Manufacturing Australia chief executive Ben Eade said the federal government’s $12-a-gigajoule cap had failed to reduce costs. “It’s not a cap, it’s effectively a floor,” he said. “Production is up, demand is down, yet prices have tripled. That’s a broken market.”

The Australian Competition and Consumer Commission’s latest gas inquiry report found recent interventions had delivered “no material improvement” for major users and warned of potential shortfalls by mid-2026 if uncontracted LNG continued to be exported.

High prices have already forced several industrial closures, including Qenos, Oceania Glass, and Incitec Pivot’s Gibson Island plant. Aluminium maker Capral said gas now makes up 7 per cent of its costs — triple what it was five years ago.

Manufacturers are calling for a nationally consistent gas reservation scheme similar to Western Australia’s, which has long ensured cheaper domestic prices.

“A future made in Australia depends on affordable gas being made available for Australian industry,” Mr Vassella said. “No gas, no future made in Australia.”