It is amusing to watch, in the usual dark way, as the evil Australian gas cartel resumes its great gouge.
Readers will recall that during August, one of Australia’s six LNG export trains was idled for maintenance. This allowed the evil gas cartel the luxury of pretending to give a fuck about Australia as gas prices fell from highs of $65Gj to $12Gj as some political pressure coincidently came to bear.
But that sith train is now reopened. The dynamics of tightening the local gas market to bring prices into parity with international has resumed.
The local gas price broke to new highs yesterday at $25Gj, 400% higher than pre-Ukraine war.
Electricity prices have duly rebounded as well, now up 250% versus pre-Ukraine War:
These prices are alone enough to add 3% to the CPI over the next year and 5% over two.
Needless to say, this will play the largest role by far in the RBA’s forecast crash of household real income to 2008 levels. Not to mention, it will directly evaporate $1-2tr in household wealth.
And do not expect it to stop. The parity international price for gas is today $79Gj.
So, what debate do we have to report on the desperate need for the Albanese Government policy remedy of imposing a $7Gj price trigger into the ADGSM or a new export levy? A process that was reported to be urgent two months ago and the only thing that can save the media itself from a profits wipeout?
None.
