Average gas bill in Australia: typical costs and how to reduce them

Gas prices have shifted significantly across Australia in recent years, which means many households and businesses are asking whether their bills are higher than they should be. While there is no single number that fits everyone, you can use typical bills and usage ranges as a benchmark to spot when it might be time to change plans or providers.

Typical average gas bills in Australia

Exact figures vary between retailers and states, however public data and market research from regulators, comparison sites and retailers give a useful guide to what many customers pay.

Small households that use gas only for hot water or limited cooking may see bills from around $150 to $250 per quarter in many metro areas.
Average family homes that use gas for hot water, cooking and winter heating can see quarterly bills between roughly $220 and $450 depending on climate and insulation.
Businesses such as cafes and restaurants, which rely heavily on gas for cooking and hot water, often see bills ranging from $800 to several thousand dollars per quarter depending on size and trading hours.
Large commercial and industrial sites with process heat or boiler loads can easily spend tens of thousands of dollars each year on gas.

Because retail prices and network costs change regularly, it is more useful to understand what drives your own bill than to chase a single “average” number.

What makes up your gas bill

Whether you are a household or a business, Australian gas bills usually contain the same core components:

Usage charges: a rate in cents per megajoule (MJ) or per kilowatt hour (kWh) for the gas you use.
Daily supply charge: a fixed cents per day fee to stay connected to the gas network.
Network and market charges: passed through by your retailer to cover pipelines, distribution and market operations.
Environmental and other charges: for example, costs linked to state schemes or carbon related policies.
Discounts and fees: such as pay on time discounts, direct debit discounts, late fees or disconnection fees.

For small customers, usage and daily supply charges usually make up most of the bill. For larger users, network and capacity costs can become more significant.

Average gas bills by state and territory

Average gas bills differ across Australia because network tariffs, wholesale costs and retailer offers vary between states and even between distribution zones within a state.

New South Wales and ACT

In NSW and the ACT, many homes and small businesses use reticulated gas for cooking, heating and hot water. Typical quarterly bills for an average household can fall in the $250 to $400 range, while small businesses might pay several hundred dollars more per quarter depending on usage. Prices are regulated at the network level, but retailers compete on market offers, discounts and contract structures.

Victoria

Victoria has some of the highest rates of residential gas use in Australia because many homes rely on gas heating during colder winters. As a result, annual gas bills for a family home can be higher than in other states, especially if the property is older or poorly insulated. Business gas users in Victoria, from cafes to manufacturers, also face significant costs if they have not reviewed their contract in some time. For a more detailed look at how business gas plans work in Victoria and how to compare them, see Zembl’s dedicated guide: Victoria gas compare.

Queensland

In Queensland, gas use is often lower for households because many homes rely more on electricity for air conditioning and hot water. That said, many commercial kitchens, hospitality venues and industrial sites still rely on gas. Typical small business gas bills can range from a few hundred dollars per quarter for a single site to much higher amounts for multi site operators.

South Australia

South Australia has a relatively high proportion of homes connected to gas networks, particularly in Adelaide. Residential bills can be similar to or slightly higher than those in NSW, while some businesses pay significant network charges on top of usage. Regular comparison is important as retailers adjust offers in response to wholesale price changes.

Western Australia

WA operates under a different market structure from the eastern states. Household gas prices can be relatively stable, but business contracts, particularly for large users, can vary widely in both price and terms. Many Perth households only use gas for cooking or hot water, which keeps individual bills relatively modest, yet hospitality and industrial users can have large annual gas spends.

Tasmania and the Northern Territory

Gas networks are more limited in Tasmania and the NT, so many customers rely on electricity or LPG instead of piped natural gas. Where reticulated gas is available, bills can be similar to other small markets, but options for switching retailer may be more restricted.

How to tell if your gas bill is too high

Instead of focusing only on the national average, it is useful to compare your bill against a few practical benchmarks:

Compare to similar properties or businesses: talk to your neighbours or industry peers to understand typical usage in your area.
Check your historical bills: look for unexpected jumps that are not explained by colder weather, longer opening hours or new equipment.
Review unit rates and supply charges: if your cents per MJ rate or daily supply charge is significantly above current market offers, there may be room to save.
Consider your equipment and insulation: older heaters, boilers and poorly insulated premises often consume more gas than necessary, which pushes bills above what is typical for your size.

If your usage seems reasonable but your total bill still looks high, you might simply be on an uncompetitive plan, especially if you have been with the same retailer for many years.

Gas bills for Australian businesses

Business gas bills can vary even more widely than residential bills because usage patterns and contract structures differ by industry and size. Common business users include:

Cafes and restaurants that use gas for cooking, hot water and sometimes space heating.
Hotels, aged care and health facilities with large hot water and laundry loads.
Manufacturers that use gas in ovens, kilns, furnaces or process heat.
Warehouses and offices that use gas heating in cooler climates.

For many of these businesses, gas is a major operating cost. Bills are shaped by:

Annual consumption in MJ or kWh.
Peak seasonal demand, especially in winter.
Network tariff category and capacity charges.
Contract length, pricing structure and whether rates are fixed or pass through.

If your business spends more than a few thousand dollars a year on gas, it is usually worth having a structured comparison carried out using your actual consumption profile. Zembl’s business energy team specialises in this kind of review.

How often to review your gas plan

Given how frequently wholesale and retail prices change, it is sensible to review your gas plan at least every 12 months or whenever your contract is due to expire. Triggers for an immediate review include:

A sudden increase in your bill that is not driven by higher usage.
Major changes to your operating hours, occupancy or equipment.
Expanding to new sites or moving premises.
Receiving notice of price changes or the end of a fixed term contract.

For businesses, combining your gas review with an electricity review can reveal further savings. Zembl’s guide on how to gas and electric compare explains how to assess both fuels together.

Practical ways to reduce your gas bill

Once you have checked that you are on a competitive plan, the next step is to work on reducing overall consumption where practical.

Improve efficiency of heaters and hot water

Service boilers, heaters and hot water systems regularly so they operate efficiently.
Upgrade to higher efficiency models when older units reach the end of their life.
Install programmable thermostats and timers to avoid heating when spaces are empty.
Seal drafts and improve insulation to reduce the amount of heat lost from your premises.

Optimise kitchen and process gas use

Turn off burners and ovens when they are not required rather than leaving them idling.
Use lids on pots and pans where possible to reduce cooking time.
Check for gas leaks and have any issues fixed promptly by a licensed gasfitter.
Consider whether some processes could be shifted to more efficient electric equipment, particularly where heat pumps or induction may offer lower running costs.

Monitor your usage

Track your gas consumption over time to spot unusual spikes early.
Set internal targets for reducing usage, for example a percentage reduction year on year.
Engage staff in energy saving behaviours, such as closing doors and windows when heating is on.

Government and regulatory context

Australian gas markets are overseen by federal and state regulators, including the Australian Energy Regulator and state based bodies such as the Essential Services Commission in Victoria and the Independent Pricing and Regulatory Tribunal in NSW. These regulators set or approve various network and retail pricing frameworks, monitor market conduct and provide guidance for small customers.

Key protections for households and many small businesses include:

Requirements for retailers to provide clear information about prices, fees and contract terms.
Access to ombudsman schemes in each state or territory if disputes arise.
Hardship and payment assistance programs for eligible customers.
Default or reference offers that act as a benchmark for standing offers in some states.

Even with these protections in place, customers who actively compare plans are often better off than those who allow contracts to roll over indefinitely.

How Zembl can help you manage your gas bills

Zembl focuses on helping Australian businesses find and switch to competitive energy deals while saving time and effort. If you are concerned that your gas bill might be above average for your size or location, Zembl can:

Review your latest gas and electricity bills.
Compare your existing rates against offers from a panel of leading business energy retailers.
Explain your options in plain language and estimate potential savings.
Handle the switching process if you choose to move to a new plan, with no interruption to supply.

If you would like to explore your options, start with a free comparison through Zembl’s energy comparison service or contact the business energy team for larger or multi site requirements. You can also read more about how business gas and electricity charges work in Zembl’s explainer: business gas and electricity bills explained.

Taking the time to understand your usage and compare offers regularly can keep your gas bills within a reasonable range for your type of home or business and free up more cash flow for the things that matter most.