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Bruce Robertson, Energy Finance Analyst Gas/LNG at the Institute for Energy Economics and Financial Analysis, has published analysis of the Albanese Government’s $12 per gigajoule (GJ) price cap on east coast domestic gas.
Robertson argues that the $12 cap is far too high and guarantees super profits for the gas cartel.
A reasonable price, including a return on equity and a substantial profit is $7/GJ. Prior to 2014, Australians paid $3-4/GJ for gas.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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