Refrigerants Australia has warned of widespread refrigerant shortages and significant price increases over the upcoming summer period.
The trade body expects price increases for refrigerants used in commercial refrigeration systems, a development expected to impact supermarkets, restaurants, cafes, pubs, and other food & beverage related businesses across the country.
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.
Refrigerants Australia executive director, Greg Picker, said it’s the small and medium businesses that rely on commercial refrigeration, that are most likely be impacted the most.
“This summer, businesses that rely on refrigeration, from seafood suppliers and ice cream shops to pubs pouring cold beer, could be forced to shut their doors as critical refrigerants become unavailable,” Picker said.
“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.
“In this period of cost-of-living pressure, shortages and price rises of refrigerant will directly threaten businesses and add to the costs on cold and frozen food and drinks that consumers rely on.”
Picker said the shortages are due to the HFC phase down.
“In 2017, the Australian Government introduced legislation to phase down refrigerants with a high global warming impact, on the assumption that industry would gradually transition to newer, lower-impact alternatives,” he explained.
“The only problem? It really didn’t happen. The industry kept buying and using equipment that relied on the older technologies.
“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 phasedown takes place on 1 January 2026, the amount of refrigerant will be reduced by another 19%.”
Picker said solutions to address the shortages and price hikes are available but the government has refused to act.
“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,” he said.
“The Australian Government has failed to act promptly to address this emerging crisis, despite extensive consultation way back in 2022 and 2023.
“This summer will be hard, but for the sake of consumers and the refrigerant industry, the Government needs to act now to avoid greater commercial disruption in the future.”