![]() ![]() “There’s issues at ports and airlines and shipping and all those systems are just clogged up.”Įconomist Saul Eslake said a few other factors have played a role too. ![]() ![]() “There’s a whole range of supply chain issues, not just energy,” he said. Those supply chains were already weakened by COVID, Mr Wood said. One uncontroversial factor is a surge in demand for coal and gas amid an opening up of economies in Europe, North America and Asia after the lockdowns associated with COVID-19 during 2020.īasically, demand for power has skyrocketed as businesses and people emerge from COVID, creating a severe shock in energy supply chains. There’s widespread disagreement about what caused the crisis, but one thing is generally accepted – a wide range of factors has contributed. “We’ve got contracts that now look as though they’re pretty well priced, where as before they looked like they were above the spot market.” 3. “I haven’t seen anything so far about Australia’s domestic gas prices being affected,” Mr Wood said. Grattan Institute energy director Tony Wood said prices for gas could increase in Australia if contract prices rise over the medium term in Asia.īut he said there’s no sign of anything like that happening yet, saying it is more likely the crisis will dissipate before Australians feel the impacts. “There’s a lot of gas, particularly in WA, but it’s on long-term contracts.” “Most of our electricity generation now is either coal on long-term contracts or, increasingly, renewables,” Mr Eslake said. The good news is that rising coal and gas prices aren’t such a big deal for Australians because we’re less exposed than China and the UK.Īfter all, Australia is a net exporter of both fuel types, meaning we can supply the local market entirely through our own domestic production.Įconomist Saul Eslake said long-term coal and gas contracts are also shielding Australian households from the impact of higher global prices. Australia is shielded from the worst impacts “The importation of fuel is getting more expensive and that will have an effect on consumer spending and household budgets.”Ģ. “In Sydney with freedom day we have seen prices recorded in the beachside suburbs of around $1.81 a litre,” Mr Felsman told TND. Ryan Felsman, a senior economist at Commonwealth Bank, said petrol prices will continue to trend upwards thanks to growing demand as the world reopens from COVID-19 and supply cuts by OPEC and Russia. It means rising global oil prices are felt by Australians at the bowser, and we’re already seeing it happen, with the Singapore gasoline price lifting $8.27 a barrel (6.8 per cent) to a three year high of $129.87 last week.Īustralia’s national bowser price rose 1.7 per cent to 153.8 cents a litre. Australians will feel the crisis at the bowserĪ few quick facts about the Australian economy: Australia exports more gas and coal than it consumes, but imports almost all of the oil it needs. Here are five things you need to know about the global energy crisis. Australian households are being shielded from the worst impacts, but this week average petrol prices in Sydney rose above 166 cents per litre as rising oil prices combined with an upswing in local fuel market cycles. ![]()
0 Comments
Leave a Reply. |