LNG price crash to wipe $3 billion from Budget

Following on from yesterday’s post on the massive job losses coming to the LNG sector, ABC’s The Business last night ran a ripper segment on the slumping oil/LNG price, which has hit LNG producers, such as Santos, for six and risks blowing a $3 billion hole in the Federal Budget via lower company taxes and lower resource rent tax receipts.

The segment also notes how local users will soon face even higher gas bills as domestic prices rise to meet export prices. While not mentioned in the segment, such price rises would obviously also make local manufacturers less competitive, hastening their demise.

Well worth a watch.