What's the average gas bill in Australia?

What is natural gas usage costing Australian households? One of the primary factors affecting the price of gas is location. Understanding the average gas bill Australians in different states and territories pay may encourage you to compare the market and source a better deal for your household.

Gas usage in Australia

Energy costs can constitute a large chunk of your household budget, and making sure you’re getting a good deal will help to keep these costs manageable. 

Given Australia’s intense climate, households tend to use hefty amounts of both electricity and gas depending on what’s available in their area. Electricity is often used to power lights, appliances and air conditioning. In contrast, gas is generally used for cooking, heating and some hot water systems.

Considering the vast uses for electricity and gas, you may find that your gas bill can add a lot to your household expenditure. If you’re able to estimate the cost of your bills, you may be in a better position to assess and adjust your overall budget.

Average gas bill in different parts of Australia

Gas prices in Australia vary between the different states and territories. The figures stated below are the latest quarterly calculations, provided by Canstar Blue, based on usage estimates. You can compare your quarterly gas bill to the average costs paid in your state to determine if what you’re paying is similar.

Source: Canstar Blue Research, November 2021

It’s important to realise that these are average quarterly estimates based on annual usage. They don’t show seasonal adjustments, such as increased use during winter. This might mean that your quarterly winter bill is significantly higher than that of your summer costs.

How can you find an energy plan that gives you a ompetitive price?

If your average gas bills are above the prices listed for your state, this may encourage you to review your household’s gas plan or consumption. When selecting a gas supplier, you may want to consider a number of determining factors.

Price

When considering price, you’ll want to understand the different pricing structures offered by retailers. Some offer a fixed price on gas usage, meaning you pay a predetermined amount regardless of how much gas you use. Others propose rates based on a block/unit of usage, meaning your costs vary depending on consumption. You may also be able to secure a deal where you pay a lower per-unit rate once you cross a particular usage threshold.

As well as usage charges, you’ll need to pay your gas retailer’s supply charges - the costs associated with supplying gas to your residence via mains. These charges vary from one retailer to another but are typically fixed when it comes to what appears on your bill.

Customer service

Customer service can often be hard to judge before you actually need it, but a quick Google search of prospective retailers may divulge positive and negative reviews from previous customers. Consider consulting friends and family members to find out who supplies their gas and whether or not they’re satisfied with their service.

Finding answers to the following questions might also help in assessing the quality of a retailer’s customer service: 

• How easily can you contact the retailer? 
• Do they have a customer service specific email address or live-chat capability?
• Do they have an Australian-based call centre? 
• How difficult is their sign up process? 
• Is the information they provide on their website comprehensive?

Hidden costs

You may get a shock when your bill arrives and there are extra costs that you were unaware of when agreeing to the plan. These can include, but are not limited to, connection fees, credit card fees and late payment fees. 

It’s important to check the full terms and conditions of the contract and inquire about any potential hidden costs before signing up for a gas plan.

Geographical location

As outlined in the average costs above, the price you pay for gas can depend heavily on where your property is. For example, prices in the Australian Capital Territory and Victoria tend to be higher than those in other locations. 

Customers in regional areas may attract higher supply costs given the infrastructure required to deliver gas to these remote locations. Those wishing to service larger properties or households with a high number of occupants may incur greater costs based on extra usage.

Incentives

Competition, particularly in metro areas, can mean that retailers may offer deals or incentives in an attempt to lure customers. Some retailers may also offer incentives if you consolidate or combine your gas and electricity bills. This is why it’s sensible to compare the market before selecting a provider.

Billing frequency

How often you want to pay your bill may depend on the nature and source of your income. If you receive your wages on a monthly basis, you may prefer to pay bills in similar instalments.

Depending on your budget, you could opt to receive quarterly bills or request a different frequency altogether.

What other energy options are available?

Armed with a better understanding of the average gas prices you’ll pay, you can determine if you’re potentially paying more than you should. If this seems to be the case, you might consider reviewing your current plan and discussing your options with your current retailer.

If they can’t offer you a better deal, you may want to consider switching to a different supplier. No matter whether your gas bill is above or below the average gas bill, it’s always good to keep an eye on gas prices in case they change.

The cost of living is high and rising and energy bills play a significant role. With this in mind, could the potential financial benefits of a solar power system be worth the installation costs?

You can save power and reduce costs by implementing smarter energy-saving measures, while still meeting demands for convenience and comfort.