Gas executives insist a lack of new supply for the domestic market has been one of the leading factors in increasing energy prices.
The chief executive of industry peak body the Australian Petroleum Production and Exploration Association has told a Senate inquiry examining the cost of living the market needs to be better resourced.
"The lack of investment in new supply has been a key factor for some of the pressures in the domestic market," Samantha McCulloch told the inquiry on Friday.
"The demand is still there, but the supply is not coming on in the timely way needed to meet that demand."
Ms McCulloch said while there was volatility in the market, with some being caused by Russia's invasion of Ukraine, an increase in supply would alleviate some of the effects.
"We need governments to prioritise projects that have stalled due to approval delays and red tape and provide regulatory certainty to bring back investor confidence," she said.
"We're already seeing how supply constraints on the east coast are impacting on Australia's cost of living."
Tracey Winters, the strategic external affairs advisor for gas company Santos, said the time taken for environmental approvals was hampering supply efforts.
She said such approvals were also affecting the renewable energy sector.
"Everybody in the industry would agree that we need and want robust environmental approval processes that give the community confidence," she told the inquiry.
"However, the time it takes to go through those processes and subsequent appeals processes is a huge impost on being able to get final investment decisions for the projects that are needed."
ExxonMobil Australia commercial director David Berman said the recent code of conduct for the sector had alleviated some of the prices for gas, but prolonged delays in the industry were exacerbating costs.
The code of conduct introduced a $12 per gigajoule cap on prices, but those in the industry have warned the code would stymie investment.
"We see prolonged delays, a lack of investment in what is a depletion-based business," Mr Berman said.
"Without investment, there will be less production that will ultimately transfer into higher prices, and therefore costs, for businesses in Australia."
The consumer watchdog earlier this year said shortfalls would be expected from 2027 if production was not expanded.
Treasury officials later told the inquiry that while energy prices had risen between 30 and 40 per cent in Australia, the increase was less than those seen in other similar countries.
Deputy opposition leader Sussan Ley told reporters the risks for investment in the gas sector in Australia needed to be reduced as a way to boost future supply.
"As soon as you talk about the cost of living ... you realise how critical the gas sector is," she said.
