Australia faces high refrigerant prices and shortages

AUSTRALIA: Small and medium businesses that rely on commercial refrigeration have been warned that this summer could bring widespread refrigerant shortages and significant price increases. 

According to Refrigerants Australia, the country’s association of suppliers and users, Australian government figures suggest there is already a significant shortfall between the amount of refrigerant that can be imported and what is needed to keep equipment running. When the next step of the phase down takes place on 1 January 2026, the amount of refrigerant will be reduced by another 19%.

Greg Picker, Refrigerants Australia’s executive director, says it’s the small and medium businesses that rely on commercial refrigeration, but tend to focus on their customers and their products, that will most likely be unprepared and most severely impacted.

While long-term supply contracts generally shield major supermarket chains and large-scale operators, smaller businesses without such protections may face severe cost pressures and operational disruptions, he warns.

Even those lucky enough to secure supply may face crippling costs, with prices already tripling from they were just a few years ago, and with more price rises likely on the way.

Picker explains that when the Australian Government introduced legislation to phase down high GWP refrigerants in 2017, it assumed that the industry would gradually transition to newer, lower-impact alternatives. 

The only problem? It really didn’t happen. The industry kept buying and using equipment that relied on the older technologies.

“Industry has been urging the Government since before COVID on practical ways to reduce refrigerant demand and improve performance across the sector, while also saving consumers money,” Picker said.

“The proposals aren’t rocket science, and similar policies have been implemented in Trump’s America, Xi’s China and across Europe with success.”

Refrigerants Australia has previously urged the Australian government to implement regulatory reform to include action on commercial refrigeration and in car air conditioning. Specifically, it has called for a GWP limit on new equipment from 2026, a ban on bulk imports of R404A from 2028, a service ban on R404A from 2030, and a GWP limit of 150 for car air conditioners from 2026.

Picker accuses the Australian Government of failing to act promptly to address what he describes as an emerging crisis, despite extensive consultation in 2022 and 2023.