Gas Pricing Structure

Like electricity, gas bills have two main components: a usage charge and a daily supply charge. However, gas usage is measured in megajoules (MJ), not kWh.

Usage Charge (c/MJ)

This is the rate you pay per megajoule of gas consumed. Typical rates range from 2.5–5.5 c/MJ depending on your location and retailer. Gas usage varies heavily by season — expect higher bills in winter for heating.

Daily Supply Charge (c/day)

A fixed daily fee for gas connection. Typical range: 55–110 c/day. If you only use gas for cooking (not heating), a plan with a low supply charge is more important than a low usage rate.

Gas Network Distributors

Like electricity, the gas network pipeline is owned by a distributor you cannot choose:

NSW: Jemena Gas Networks (Sydney), Australian Gas Networks (regional)
VIC: AusNet Services, Multinet Gas, Australian Gas Networks
QLD: Australian Gas Networks (Brisbane), Allgas Energy
SA: Australian Gas Networks
WA: ATCO Gas Australia

Network charges make up a significant portion of your gas bill, which is why prices vary between suburbs.

Gas vs Electricity for Your Home

Many Australian households are reducing gas usage in favour of electric appliances (induction cooktops, heat pump hot water, reverse-cycle air conditioning). However, gas can still be cost-effective for:

Home heating in colder climates (VIC, TAS, ACT)
Hot water systems (gas instantaneous systems are efficient)
Cooking (gas cooktops preferred by many chefs)

Tips for Finding the Best Gas Plan

Compare both usage AND supply charges — a low usage rate with a high supply charge can cost more overall.
Check if the retailer offers a dual-fuel discount (bundled electricity + gas).
Look for annual rate reviews — many plans increase prices each year.
In Victoria, compare against the VDO benchmark. In other states, check the DMO.
Use Energy Made Easy (federal) or Victorian Energy Compare (VIC) for independent comparisons.

What Gas Costs in 2026

A typical Australian household using 15,000–25,000 MJ a year — gas heating, hot water and cooking — spends roughly $900–$1,300 annually, though the exact figure swings with winter severity and your distributor's network charges. Gas bills are seasonal: expect 40–60% of your annual usage in the cooler months if you heat with gas. As with electricity, the regulated reference prices (DMO in NSW, SA and SE QLD; VDO in Victoria) give you a benchmark — compare your current plan against the reference before renewing.

How Gas Billing Works

Gas is metered in megajoules (MJ) of energy, not volume — your meter measures the gas, and the distributor converts it to MJ using the heating value of the supply. You pay two charges: a usage rate in cents per MJ (typically 2.5–5.5 c/MJ in 2026) and a daily supply charge (roughly 55–110 c/day) that you pay whether you use any gas or not. That fixed charge is why a household using gas only for cooking should prioritise a low supply charge, while a gas-heated home should focus on the usage rate. Network charges make up a large share of the bill, so prices vary by suburb even for the same retailer.

Gas vs Electrification in 2026

Many households are now weighing gas against electrification — induction cooktops, heat-pump hot water and reverse-cycle heating. The case for switching: electric appliances are increasingly efficient, and the new Solar Sharer Offer's free midday window (where available) does not apply to gas. The case for keeping gas: instantaneous gas hot water and gas heating can still be cheaper upfront in cold climates, and dual-fuel bundles (electricity plus gas from one retailer) often cut 5–10% off both bills. If you are renovating, compare the 10-year running costs rather than the installation price.

Action Steps for Gas Customers

Find your distributor and check the DMO/VDO reference for your area.
Compare at least two retailers on total annual cost at your MJ usage.
Ask about dual-fuel discounts if you also buy electricity.
If you use gas only for cooking, focus on the daily supply charge.
Re-check your plan every year — rates often rise on 1 July.

A Worked Gas Bill Example

To see how the two charges combine, take a home using 18,000 MJ a year at 3.5 c/MJ: usage of $630, plus a supply charge of 90 c/day over 365 days ($328), gives an annual bill of roughly $958 before discounts. Now compare a plan at 3.0 c/MJ with a $1.10/day supply charge: $540 + $401 = $941 — almost identical, even though the usage rate looks 14% better. That is why you must always compare total annual cost at your own usage, not the per-MJ rate in isolation.