Over 2 million Victorians use gas in their homes and businesses. Many people rely on it to stay warm and cook meals. However gas is a fossil fuel and, between 2009 and 2024, gas prices rose by 169% on average – the largest increase of any state or territory.
Gas prices across Australia
According to St Vincent de Paul’s Tariff Tracker, Australian households that use 30,000Mj of gas a year are now paying $1300-$1900 annually – nearly double what they were paying in 2009.
However Victoria uses more gas than any other state or territory. Here, households use an average of over 60,000Mj and are paying average annual gas bills of $2120-$2240.
Will gas prices go up or down?
While wholesale gas prices have decreased since unprecedented highs seen in mid-2022, gas bills overall will continue to rise largely thanks to network costs – that is, the cost associated with maintaining the gas network.
These costs are passed on to consumers on their bills and, as more and more households shift away from gas, opting instead for electric appliances, the number of customers connected to the gas network is decreasing. This means, in years to come, there will be fewer customers connected to the gas network to share these costs, increasing bills for the remaining gas customers.
Energy Consumers Australia’s Stepping Up report shows gas bills will likely increase significantly from 2030 for this reason, more than doubling between now and 2050.
Without major policy changes, they report, “the network component will rise from roughly 30% of the total gas bill now to 70% in 2050.”
Source: CSIRO and Dynamic Analysis report - Stepping Up, Energy Consumers Australia
Is electricity cheaper than gas?
While gas has historically been cheaper than electricity, it is now typically cheaper to power your home with electricity than gas.
Electric appliances are also generally more efficient and, therefore, cost less to run than their gas counterparts. This is especially true for households with solar, who can use free, clean electricity generated by their panels to power appliances.
Savings from using 100% electricity also come from removing your gas connection altogether, so you can consolidate your energy bills and eliminate gas supply charges.
How to avoid rising gas prices
The move away from gas towards all-electric homes is inevitable. This process is known as electrification and, while a long-term journey for most, households that plan for the transition can benefit most.
There are many different pathways to going all-electric but, for many, it involves replacing appliances one at a time when it makes sense for you.