Gas prices in Australia in 2026 vary dramatically by state — a Victorian household running gas central heating through winter can pay more than three times what a Perth household pays annually. Understanding what the average household actually pays, why prices differ so much across states, and how the bill is structured is essential for budgeting accurately in any Australian city.
Here is a data-driven breakdown of gas prices in Australia in 2026, based on Canstar Blue research from February 2026, Finder’s Consumer Sentiment Tracker, and published retail plan data from energy providers.
What Is the Average Gas Bill in Australia in 2026?
The national average quarterly gas bill in Australia is approximately $229 per quarter, according to Finder’s Consumer Sentiment Tracker. That translates to roughly $60 to $150 per month and approximately $788 per year for a typical household.
But those national averages mask enormous variation. A two-person Victorian household using gas central heating through winter can pay upwards of $1,000 per year or more. A Queensland household using gas only for hot water and cooking may pay less than $400 per year.
The state you live in, the appliances you run on gas, the size of your home, and whether you have gas central heating are the four biggest drivers of where your bill sits within that wide range.
Average Gas Bill by State in 2026
Based on Canstar Blue research from February 2026 and published retail plan data, here is how average annual gas bills compare across Australia’s states:
| State | Average monthly bill | Average annual bill |
|---|---|---|
| Victoria | $80 — $220 | $960 — $2,640 |
| South Australia | $150 — $180 | $1,800 — $2,160 |
| New South Wales | $80 — $130 | $960 — $1,560 |
| Queensland | $50 — $90 | $600 — $1,080 |
| Western Australia | $40 — $70 | $480 — $840 |
| Tasmania | variable | higher due to limited competition |
Note: Victorian figures span a wide range because households with gas central heating — common in Melbourne’s older housing stock — pay significantly more than those using gas only for hot water and cooking.
Victoria has the most competitive residential gas retail market in Australia, with a large number of retailers competing for customers. Despite this competition, Victorian gas bills are among the highest in the country because gas heating is so widely used. Winter bills for Melbourne households running gas heaters can be two to three times higher than their summer equivalents.
South Australia has some of the highest gas usage rates in the eastern states — approximately 6 cents per megajoule — pushing annual bills higher despite households using less gas than Victoria overall.
New South Wales has a competitive gas market and moderate bills. Sydney’s milder winters compared to Melbourne mean less spending on space heating, keeping average bills below Victoria’s.
Queensland has lower gas bills than southern states because the climate reduces demand for space heating. Gas in Queensland is primarily used for hot water and cooking — a much lower-cost use profile than central heating.
Western Australia consistently records the lowest gas bills of any state. Perth households benefit from lower gas usage rates and a milder climate. The average Perth monthly gas bill ranges from $40 to $70. Note that WA does not have retail competition — Alinta Energy is the dominant gas retailer.
Tasmania has limited retail competition with only two gas providers — Aurora Energy and Solstice Energy Gas — both offering near-identical rates. Tasmanian gas prices per MJ sit among the highest in the country at approximately 6 cents per MJ.
How Your Gas Bill Is Calculated
Understanding what makes up your gas bill helps you identify where savings are possible.
Gas is measured in megajoules (MJ). One megajoule is equivalent to one million joules of energy — the standard unit of gas consumption measurement in Australia. For reference, heating water for a five-minute shower uses approximately 12 to 15 MJ, while an hour of cooking on a gas stove uses approximately 5 to 10 MJ. A gas heater running for several hours per day in winter consumes far more than either.
Every gas bill has two main components:
Usage charge: The cost for the gas you actually consume, measured in cents per megajoule (c/MJ). Usage is often charged in blocks — a tiered rate where you pay one rate for the first block of consumption and a different rate for consumption above that threshold. Average usage rates by state:
- Victoria and Queensland: approximately 3.5 to 4.0 c/MJ
- NSW: approximately 4.0 to 4.5 c/MJ
- South Australia and Tasmania: approximately 5.5 to 6.5 c/MJ
Daily supply charge: A fixed fee you pay every day simply for being connected to the gas network — regardless of how much gas you use. Average daily supply charges range from approximately 60 to 90 cents per day, or $219 to $329 per year. This fixed cost means that households using very little gas still face a substantial base cost just for maintaining the connection.
A simple annual cost estimate for a 2-person household: Using 20,000 MJ per year at 4.0 c/MJ, plus a daily supply charge of 74 cents:
- Usage cost: $800
- Supply cost: $270
- Total: approximately $1,070 per year
Households with gas central heating will consume significantly more than 20,000 MJ per year — potentially double or more — in cold climates.
Why Gas Prices Differ So Much Across States
Climate is the primary driver. States with colder winters — Victoria, South Australia, Tasmania, the ACT — see dramatically higher gas consumption from space heating. A gas heater running several hours per day through a Melbourne winter adds hundreds of dollars to an annual bill that would not exist for the same household in Brisbane.
Infrastructure and network costs vary by state. The cost of transporting gas through different pipeline networks is factored into the supply charges and usage rates that retailers pass on to customers. States with longer or more complex distribution networks face higher underlying costs.
Retail competition affects prices. In NSW, Victoria, Queensland, and South Australia, multiple retailers compete for customers — which creates market pressure on pricing. In Western Australia and the Northern Territory, gas retail is not deregulated in the same way, limiting the competitive dynamic.
Usage profile matters enormously. A household using gas only for cooking and hot water pays a fraction of what a household using gas for central heating pays. The appliances in your home — whether you have a gas heater, gas hot water system, or gas cooktop — determine your consumption profile more than almost any other factor.
Winter vs Summer — The Seasonal Gap
For households with gas central heating, winter bills can be two to three times higher than summer bills. This is the most significant seasonal variation in any Australian energy expense.
During summer, a Victorian household using gas only for hot water and cooking might use 1,000 to 2,000 MJ per month. The same household running a gas heater through June and July might consume 4,000 to 8,000 MJ per month — with the bill rising proportionally.
This seasonal pattern means looking at an annual average gas bill in isolation can be misleading. A monthly average of $100 might represent $50 bills in summer and $200 bills in winter for the same household.
For the full picture of energy costs in Australia in 2026, including the sharp increase in electricity bills, see our electricity prices guide — Australia’s Electricity Bills in 2026 — What the ABS Data Actually Shows.
How to Find a Cheaper Gas Plan in 2026
Australia’s gas retail market offers meaningful savings for households willing to compare and switch. Key steps:
Use the official government comparison tool. EnergyMadeEasy.gov.au is the Australian Energy Regulator’s official comparison website for households in NSW, Queensland, SA, ACT, and Tasmania. It shows all available plans with standardised pricing for your postcode and usage level — free to use, independent, and up to date.
Victorian households should use the Victorian Energy Compare website run by the Victorian Government for the same purpose.
Compare usage rates and supply charges separately. A plan advertising a low usage rate may offset that with a high daily supply charge. Always calculate the total annual cost for your estimated consumption — not just the per-MJ rate.
Switch retailers. Loyalty to a single provider often means paying a loyalty penalty. Retailers regularly offer better rates to new customers than to existing ones. Switching gas retailers in competitive states is straightforward and does not interrupt supply.
Consider your appliances. If you are renovating or replacing appliances, the long-term cost difference between gas and electric alternatives — particularly in an environment of rising gas prices — is worth calculating. Heat pump hot water systems and reverse cycle air conditioners are increasingly cost-competitive with gas alternatives, particularly in states with higher gas rates.
Check for government concessions. State and territory governments offer gas concessions for eligible households — pensioners, health care card holders, and low-income households. Check your state government’s energy concession program before assuming you are paying the right amount.
Gas vs Electricity — The Ongoing Comparison
Australian households increasingly face the question of whether to maintain a gas connection at all, given that electricity costs have also risen sharply and solar power can offset electricity bills.
The calculus differs by household:
- For households with gas central heating in Victoria and SA, gas remains significantly cheaper than running equivalent electric heating in most circumstances
- For households using gas only for a cooktop, the annual savings over an electric induction alternative are modest — sometimes less than the annual supply charge itself
- For new builds and renovations, many builders and developers in NSW, Victoria, and Queensland are now offering all-electric designs, partly in response to state government policies discouraging new gas connections
The Australian Energy Market Commission’s 2025 residential electricity price trends report noted that electricity costs remain higher per unit of energy than gas for most households — but the gap is narrowing as wholesale gas prices rise and solar reduces the net electricity cost for those who have it.
For the full picture of household energy costs, see our cost of living breakdown in our electricity prices guide and our insurance costs guide.
Key Takeaways — Gas Prices Australia 2026
The average Australian gas bill is approximately $229 per quarter — but that national figure conceals enormous variation. Victorian households with gas heating pay up to $220 per month in winter. Perth households using gas for hot water and cooking pay as little as $40 per month. Gas bills are made up of a usage charge in cents per megajoule and a fixed daily supply charge of 60 to 90 cents per day. Switching plans through EnergyMadeEasy.gov.au or Victorian Energy Compare can deliver meaningful savings for households in competitive retail markets.
For the full household budget picture, see our cost of living breakdown — How Much Does It Cost to Live in Australia in 2026? — and our wages guide to understand whether incomes are keeping pace with rising energy costs.
This article is for general informational purposes only and reflects the author’s own research and understanding of publicly available data. Gas prices, plan availability, and retailer ratings change regularly. Always verify current plan pricing directly with retailers or through government comparison tools before making decisions.
