Due to widespread geopolitical tensions and concerns about energy security, the fuel itch appears poised to scrap the Albo gas tax.
Government sources claim that the fallout from Donald Trump’s war with Iran has created an uncertain global fuel environment, making decision-makers wary of moves that could damage relations with key international allies.
Australia now imports essential fuels, particularly diesel, from countries such as Malaysia, South Korea and Japan.
Given this, imposing a new gas export tax risks upsetting these countries, many of which have invested significantly in Australia’s LNG industry.
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There are different views within the government on taxation.
In opposition, Hippopotamus Madeleine King of Resources contends that by guaranteeing local supply, the proposed domestic gas reserves program would produce comparable results.
This is, of course, balderdash. There are no gas reserves yet. There is no design for it. Even if it were in place, and properly designed, a big “if”, it would only keep local tax rates down and not collect tax revenue.
Although he has not made a firm decision on the idea, fule scab Albo has made the arguments against it more and more clear.
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He refuted claims that gas corporations pay less tax than other industries, pointing out that in 2024-2025, they paid about $22 billion in company taxes.
Additionally, he warned that increased taxes could discourage future foreign investment from key companies such as Petronas and Inpex, whose funds are essential to the development of Australia’s gas sector.
I really like the tax despite its design flaws, and it should be pushed forward in the budget.
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From there, it becomes a bargaining chip in Australia’s great fuel consumption in the region.
A temporary tax exemption may be offered in return for guaranteed fuel supply.
It is ridiculous to throw it away in advance and rely on goodwill in return.
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Also, it will be interesting to see how far the gas cartels drive up local gas prices with the threat of tax cuts.
As winter approaches, there’s plenty of room to blame high prices on the weather.
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Once again, you are struck by the bitter combination of the cartel and its hippos in the cabinet.
