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Ivan Radic
The Australian government, despite multiple requests from economists, has not yet taxed the extra earnings of businesses that sell LNG, claims study author Mark Ogge.
The report suggests that the income from such a levy might be used to upgrade Australia's electrical infrastructure and compensate Australian consumers and businesses that have been unfairly hurt by increased energy prices. Two-thirds of Australians support the implementation of an excess profits tax on LNG sales, according to surveys referenced in the paper.
The peak of gas price growth in Europe, one of the major consumers of Australian LNG, was observed on August 26 when Russian Gazprom announced a complete shutdown of supply through the Nord Stream pipeline. At that time, the September futures price went above $3,500 per 1,000 cubic meters. The fact that Europe's underground gas storage facilities are full has caused prices to drop recently.
For the upcoming heating season, the EU nations intend to establish a consortium that will purchase gas on the international market and supply it to European customers. Brussels will therefore regulate gas pricing, including LNG costs.
source: vice.com
The report suggests that the income from such a levy might be used to upgrade Australia's electrical infrastructure and compensate Australian consumers and businesses that have been unfairly hurt by increased energy prices. Two-thirds of Australians support the implementation of an excess profits tax on LNG sales, according to surveys referenced in the paper.
The peak of gas price growth in Europe, one of the major consumers of Australian LNG, was observed on August 26 when Russian Gazprom announced a complete shutdown of supply through the Nord Stream pipeline. At that time, the September futures price went above $3,500 per 1,000 cubic meters. The fact that Europe's underground gas storage facilities are full has caused prices to drop recently.
For the upcoming heating season, the EU nations intend to establish a consortium that will purchase gas on the international market and supply it to European customers. Brussels will therefore regulate gas pricing, including LNG costs.
source: vice.com
