The government will take further action if gas prices don't fall after an agreement with resource companies.
Resources Minister Madeleine King says the government has already secured nearly triple the amount of gas from resource companies to cover the expected shortfall.
"But I do accept if prices don't come down there will be more for the government to do," she told Sky News.
Ms King acknowledged wholesale gas prices weren't likely to fall below levels seen before Russia's invasion of Ukraine.
The resources minister also said the previous coalition government had too many fossil fuel subsidies.
She said the government shouldn't be pumping up coal and gas projects that cannot stand on their own two feet.
"That doesn't make sense, especially in these constrained times," she said.
Shadow Treasurer Angus Taylor rejected the coalition had spent too much on fossil fuels.
"I don't think that's right at all," he told Sky News.
"The fact of the matter is Labor needs to make sure we've got a balance in our energy system."
