How to Reduce Your Gas Bill in Australia in 2025

Natural gas prices in Australia have risen 20–40% in recent years, and many analysts expect further increases as domestic supply tightens. The average household with gas heating and hot water pays $1,000–$2,000 per year in gas bills. Here's how to reduce that — and whether cutting gas altogether makes sense for your home.

1. Compare and Switch Gas Providers

As with electricity, the gap between the cheapest and most expensive gas plans in most states is significant — typically 15–30%. Use:

• Energy Made Easy (energymadeeasy.gov.au) for NSW, QLD, SA, ACT
• Victorian Energy Compare for Victoria

Enter your most recent gas bill and the tool will show you every available plan and your estimated saving on each. In Victoria particularly, there is strong competition between AGL, Origin, EnergyAustralia, Alinta, and smaller retailers. Switching can save $150–$400 per year on gas alone.

2. Reduce Gas Heating Usage

Heating is typically 60–70% of a household's gas bill. The same principles as electricity heating apply:

• Set your ducted gas heater to 18–20°C, not 22–24°C. Each degree costs approximately 10% more to run.
• Only heat rooms you're using — close doors and vents to empty rooms.
• Use a programmable thermostat or smart thermostat (like Ecobee or Nest) to avoid heating an empty home.
• Service your gas heater every 2 years — a dirty, unserviced heater runs 10–20% less efficiently.

3. Gas Hot Water Efficiency

Gas continuous flow hot water systems (Rinnai, Rheem, Bosch) are efficient but usage habits matter enormously:

• Reducing shower time by 2 minutes saves approximately $50–$100/year per person on gas hot water.
• Fitting a low-flow showerhead (available from Bunnings from $30) reduces hot water consumption by 30–50% with no noticeable change in shower quality.
• Wash clothes in cold water — modern detergents are designed for cold water and the difference in cleanliness is minimal. Hot water washing adds $50–$100/year to gas costs.

4. Gas Cooking — Is It Actually Cheaper?

Gas cooktops are popular in Australia, but with gas prices rising and electricity rates stable or falling on solar, the cost advantage is diminishing. For average cooking usage:

• Gas cooktop: approximately $100–$200/year in gas costs
• Electric induction cooktop: approximately $80–$160/year in electricity costs

The cooking portion of your gas bill is relatively small. If you're considering going all-electric, the hot water and heating components are far more significant than cooking.

5. Should You Ditch Gas Entirely?

The case for electrification has strengthened in 2024–25. Key considerations:

• Gas supply charges: Even if you use very little gas, you typically pay a daily supply charge of $0.50–$1.50/day — $180–$550/year just to be connected. If your gas usage is low, this fixed charge makes gas disproportionately expensive.
• Heat pumps: Modern reverse-cycle air conditioners and heat pump hot water systems use electricity far more efficiently than gas equivalents. A heat pump hot water system delivers 3–4 units of heat per unit of electricity consumed.
• Solar: If you have solar panels, electrifying your home means you can run heating, cooking and hot water partly or fully on free solar electricity.
• Government rebates: Victoria, NSW and SA offer rebates of $500–$1,800 for replacing gas appliances with electric alternatives.

For most households, the long-term financial case for electrification is strong — though the upfront replacement cost of appliances can be $2,000–$8,000 and the payback period varies significantly.

Quick Wins to Reduce Your Gas Bill Now

• Compare and switch plans: save $150–$400/year
• Lower heating thermostat by 2 degrees: save $100–$200/year
• Install a low-flow showerhead: save $50–$150/year
• Wash clothes in cold water: save $50–$100/year
• Service your heater: save $50–$150/year in efficiency

Total quick-win potential: $400–$1,000 per year.