Amazing stuff as the evil gas cartel takes the moment of distraction posed by the budget to break both price caps and the Albanese Government.
East coast spot prices have risen to levels much beyond the wholesale price cap and above similar LNG costs during a cold spell that has affected much of the eastern states.
While some east coast producers indicated they would not submit their commitments by the requested deadline of 5 p.m. on May 8, others have told the government how much gas they plan to supply to the domestic market this year and at what prices, or plan to do so within days.
The Albanese government requested the material ahead of the conclusion of comment on the code of conduct, which will establish standards for the selling of domestic gas, on Friday.
Spot gas prices on the east coast have risen far over the $12 per gigajoule restriction established by the government on wholesale prices in December.
Spot gas in Sydney was $18.80/GJ on Monday and is anticipated to rise to more than $19.50/GJ on Tuesday, causing concern among small firms with direct exposure to that market.
Spot prices are higher at that level than “netback” rates for spot LNG exported from Queensland, which are $15.65/GJ in May, according to the competition agency. Netback prices are the amount of money a gas supplier may expect to get for exporting its gas.
“I don’t think [federal Climate Change and Energy Minister Chris] Bowen understands and appreciates the gravity of the situation, or the reality and urgency of the situation.”
“Where did this $12 gas go?” It’s complete rubbish.”
It’s worse than that. Hilariously, these prices are now above the AUD16Gj being paid in Asia for Australian gas as the global gas price craters amid a glut:
Even more amusing, it comes on the heels of Chicken Chalmers’ go-soft minimal tax increase on the sector.
Once again proving that if you give a cartel an even break it will repay you with bald-faced treason.
Either Albo’s cowards break this abhorrent greed or it is going to break the Australian economy all over again, recalling that no less than one-third of the current CPI surge is down to this. Another electricity price shock is already building and Australia will stand out as the only jurisdiction on earth suffering a second round inflation surge!
Either the government steps up and smashes the cartel with export levies and every other harsh measure it can think of or it has effectively ceased to exist.
And so has your country.
