Why is the Whitehaven share price whizzing 7% higher today?

The Whitehaven Coal Ltd (ASX: WHC) share price is well and truly in the green today despite no news having been released by the coal producer.

It’s joined in the green by many of its S&P/ASX 200 Energy Index (ASX: XEJ) peers as the sector leads the S&P/ASX 200 Index (ASX: XJO). Meanwhile, the company has slammed a mooted tax on thermal coal and gas.

Right now, the Whitehaven Coal share price is $8.765, 6.5% higher than its previous close.

At the same time, the ASX 200 has dropped 0.51% and the energy sector is up 1.49%.

Let’s take a closer look at what might be going on with the ASX 200 coal favourite today.

Whitehaven share price lifts 7% on Wednesday

The Whitehaven share price is powering up on Wednesday. Its joined in the green by fellow coal producers New Hope Corporation Limited (ASX: NHC) and Coronado Global Resources Inc (ASX: CRN). They’ve gained 5% and 3.7% respectively at the time of writing.

It comes after coal futures lifted 5.9% to US$198.65 a tonne overnight, according to CommSec.

Meanwhile, Whitehaven has hit headlines after urging the federal government to “rule out” a contemplated tax on thermal coal exports intended to lower energy prices. The company today said:

The compounding nature of the measures the Government is actively considering, or has refused to rule out in the case of a new mining tax, is bad news for jobs and investor confidence and is hard to reconcile with Labor’s stated support for Australian mining – including coal – in its pre-election policy platform.

Treasurer Jim Chalmers leant away from tax talk yesterday, telling ABC Radio National:

Our first preference is to try and find a regulatory solution here, rather than a tax solution.

There’s an important reason to leave all the options on the table and that is; there’s a lot of complex interactions here in these markets … [we need] a temporary, meaningful, sensible, responsible intervention in this market which recognises that these high prices brought about by a war in Europe have the potential to strangle our local industries and make life harder for Australians.

But Whitehaven is sceptical a tax would do anything to address energy prices. It said:

Further taxing our coal exports won’t make electricity cheaper for Australian consumers, it will just cost jobs and undermine our reputation as a reliable trading partner.

The rising cost of living is something the Government must address but a new tax will never be a cure for high domestic energy prices.

The post Why is the Whitehaven share price whizzing 7% higher today? appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in November 2022
• Why Computershare, Jervois Global, Origin, and Whitehaven Coal shares are sinking
• Why is the Whitehaven Coal share price falling in a hole on Friday?
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• Here are the 3 most traded ASX 200 shares on Wednesday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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