Japan pays less for OZ gas because we have no Reserve Resource Policy

The news that Australian gas is cheaper in Japan than it is for Australian consumers comes as no surprise to older readers of On Target.

The June 17, 1977 edition of OT reported:


"Murray Goulburn Co-operative Co. Ltd. of Victoria, manufacturer and marketer of dairy produce for more than 6000 Victorian and southern NSW dairy farmers, announced last week a huge sale of butter and full cream milk powder, worth almost $50 million, to the Soviet Union and Venezuela". The Australian, 27/5/77

The article went on to say that the Soviet butter order amounted to 6,000 tonnes, which would return a net $A750 a tonne to equalisation. This amounts to approximately 35 cents a pound. With freight costs and handling taking a further 10 cents a pound, this means that the Australian butter will be landed in the Soviet at about 45 cents a pound. Australians have to pay over twice as much. The price to the Soviets could be even less.
The equalisation price is an average taken from the Home price and the Export price. The Home price is currently well over $1100 per tonne. If the Soviet order is "netting to equalisation $750 per tonne" then what is the actual price to the Soviets making up the export half of the average?
Not content with capitalising on the despair of crisis ridden beef producers, resulting in the virtual give away of meat to the Soviets eighteen months ago, Australia is now subsidising butter exports to the Soviet as well...
Read further http://alor.org/Volume13/Vol13No22.htm

Japan pays less for OZ gas because we have no Reserve Resource Policy

KAP member for Kennedy isn’t surprised by today’s reports that Australian gas is 40 per cent cheaper in Japan than in Australia, despite export costs.
Mr Katter said “Our mineral processing industries in Australia now are under very serious threat. They have announced twice the closure of the copper refinery in Townsville, we have the Qld nickel plant closed, and in Mount Isa they’ve closed a lot of refineries, why? Because they cannot afford the gas!...



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Thursday, 08 June 2023

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