Despite being a net energy exporter, Australia is unlikely to gain much from the ongoing surge in energy prices. This is largely because oil and gas firms are not reinvesting their profits to boost domestic production. And while the government will see higher tax revenue, the impetus to the economy would be modest even if it were fully recycled. On the flip side, higher energy prices could significantly boost inflation this year, weighing heavily on households' purchasing power and the outlook for private consumption.
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