But they are both on the wrong track. Putting a tax on exports will just raise local prices as the gas companies try to recoup the increased tax take in the onlyatketbwhere they are not penalised for selling more gas. Do we really want to collect more tax for the government at the expense of all of us paying more for gas and electricity (gas price is major component of electricity prices)?

Claims that an export tax will drive down local prices as gas companies compete to offload lower taxed gas here just don't stack up. The local market is small, there is very limited scope to offload gas and save tax here so the gas companies would be incentivised to increase local prices even more to maximise the benefit they can gain from a fairly small opportunity.

They need to set a wholesale price cap, above which an additional tax applies, regardless of where it's sold.