Gas Plans Australia: How to Compare and Save in 2025

Natural gas remains a key energy source for millions of Australian households, powering heating, hot water, and cooking. But with gas prices rising and the energy market evolving, comparing gas plans has never been more important. Here’s how to find the best gas deal in 2025.

How Gas Pricing Works

Gas bills are typically made up of:

• Usage charges (c/MJ): The cost per megajoule of gas consumed. This is the main component of your bill.
• Daily supply charge (c/day): A fixed daily fee for being connected to the gas network.
• Seasonal variations: Gas usage spikes in winter for heating, so bills are typically higher in colder months.
• Block pricing: Some plans charge different rates for different usage levels (e.g., first 10 MJ/day vs additional usage).

Unlike electricity, gas plans are generally simpler—but there are still significant differences between retailers.

Types of Gas Plans in 2025

Market offers: Competitive plans with varying rates and discounts. The best deals are usually market offers.

Standing offers: Default plans with regulated prices. If you’ve never switched or your contract has expired, you’re likely on a standing offer paying more than necessary.

Fixed-rate plans: Lock in your gas rates for a set period, protecting you from price rises.

Variable-rate plans: Rates can change at the retailer’s discretion.

Bundled plans: Combine gas and electricity with one retailer for a bundling discount.

How to Compare Gas Plans

1. Check Your Current Bill

Review your latest gas bill to find your average daily usage (in MJ) and current rates.

2. Use Comparison Tools

Energy Made Easy (energymadeeasy.gov.au) and Victorian Energy Compare (for Victorians) let you compare gas plans based on your postcode and usage.

3. Compare Key Factors

• Estimated annual cost: The total you’ll pay over a year based on your usage.
• Usage rates: Compare per-MJ rates, especially if you’re a high user.
• Supply charges: Daily supply charges vary between plans and can add up over a year.
• Discounts: Pay-on-time and direct debit discounts can significantly reduce your bill.
• Contract terms: Fixed or variable? Any exit fees?

4. Consider Bundling

If you get electricity from the same retailer, check if bundling saves you money. Some retailers offer 5–10% off for dual fuel customers.

2025 Gas Market Trends

Several factors are shaping the gas market:

• Price volatility: Global energy markets have pushed wholesale gas prices up, flowing through to retail prices.

• Electrification push: Government incentives are encouraging households to switch from gas to electric appliances (heat pumps, induction cooktops). If you’re renovating, consider going all-electric.

• Gas phase-out policies: Some states are moving to phase out gas connections in new homes. Existing homes can still use gas, but long-term trends favour electricity.

• Fewer retailers: The gas retail market has consolidated, with fewer players than electricity. This can mean less competition and fewer deals.

Real-World Example: Gas Savings

The Nguyen family in Adelaide were paying $1,100 per year for gas on a standing offer. In 2025, they compared plans and switched to a market offer with a 12% pay-on-time discount. Their new estimated annual cost: $900—a saving of $200 per year.

Tips for Reducing Gas Bills

• Switch plans regularly: Don’t let contracts expire onto higher-priced standing offers.
• Insulate your home: Better insulation reduces heating needs and gas consumption.
• Upgrade to efficient appliances: New gas heaters and hot water systems are far more efficient than older models.
• Consider heat pumps: Electric heat pump hot water systems are more efficient than gas and may be cheaper to run.
• Use gas efficiently: Avoid heating empty rooms, use timers on heaters, and maintain appliances regularly.

Should You Stay on Gas?

In 2025, many households are questioning whether to stick with gas or go all-electric. Electric heat pumps and induction cooktops are increasingly cost-competitive, and government rebates can offset the upfront cost of switching. If your gas appliances are due for replacement, it’s worth comparing the long-term costs of gas vs electricity.

The Bottom Line

If you’re staying on gas, comparing plans is essential to avoid overpaying. Use comparison tools, check for bundling discounts, and switch regularly to get the best deal. And if you’re considering the switch to all-electric, now is a good time to crunch the numbers.