There is a finite amount of gas available at any one time. One group is prepared to pay one price and another group is prepared to pay less. The seller gets to choose where that gas goes and they choose the higher price. If the buyer needs all of the gas then there will be no more gas for the group prepared to pay less; if they want it, they pay equivalent.
I find this whole discussion ridiculous. First put forward by Jeremy Buckingham, perpetuated by the loonies and then supported by Ross Gittens in today's SMH (which drives me round the bend).
This is basic supply and demand economics.. and it disturbs me how many people are lurching towards old school protectionist policy on this issue.
MEL Price at posting:
14.0¢ Sentiment: LT Buy Disclosure: Held
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