Is Gas More Expensive Than Electricity in Australia
Choosing between gas and electricity has become a common consideration for Australian households. As energy prices change and more efficient technologies become available, many homeowners are comparing the long-term costs of each option. With energy prices continuing to fluctuate, many Australian households are looking into whether gas is more expensive than electricity in Australia and how each option affects long-term energy costs. This article breaks down whether gas is more expensive than electricity in Australia by comparing real prices, household usage scenarios, and key cost factors, helping you understand which option is cheaper in different situations.
Gas vs Electricity Prices in Australia
Understanding gas vs electricity prices in Australia requires looking beyond simple national averages, as energy costs vary significantly across states and capital cities. Both electricity and gas are priced differently depending on location, retailer, and network costs, which means the “cheaper option” is not the same everywhere.
Many homeowners still ask whether energy bills are lower when using gas or electricity, especially when trying to understand cheaper gas or electricity in the long term.
Typical Residential Electricity and Gas Prices in Major Australian Cities
These figures are indicative residential rates based on typical market ranges. Actual prices vary depending on retailer, tariff structure, location and household usage.
Electricity and gas are measured differently, so their unit prices cannot be compared directly. Electricity is charged in cents per kilowatt-hour (c/kWh), while gas is charged in cents per megajoule (c/MJ). The final household cost depends on appliance efficiency and how much energy is used.
City | Electricity (c/kWh) | Gas (c/MJ) |
Sydney | ~35–37 | ~3.5–4.5 |
Melbourne | ~26–29 | ~3.5–4.0 |
Brisbane | ~32–34 | ~4.5–6.0 |
Adelaide | ~42–45 | ~3.5–4.5 |
Perth | ~30–33 | higher variation (often bundled/unit-based) |
Hobart | ~27–30 | ~5.0–6.0 |
Canberra | ~29–32 | ~5.0–6.0 |
Darwin | ~28–31 | limited gas availability |
Figures are indicative averages and can vary depending on retailer plans, tariffs, and usage levels. Since electricity and gas are measured differently, understanding the cost of electricity per kWh helps households make a more accurate comparison between the two energy sources.
Which Is Cheaper: Gas or Electricity for Home Use?
Whether gas or electricity is cheaper for home use in Australia depends less on headline energy prices and more on how energy is actually consumed in the home. Different appliances, efficiency levels, and household habits can significantly change the final cost.
Heating costs: gas vs electricity
Heating is often one of the largest household energy expenses in cooler regions such as Victoria, Tasmania, ACT and parts of New South Wales.
Gas heating: Traditionally cheaper for whole-home ducted systems, but efficiency varies widely. Older systems can be expensive to run.
Electric heating: Standard electric heaters are costly to run, but modern reverse-cycle air conditioners can be 2–4 times more efficient, often making electricity cheaper for heating in many homes.
In many modern Australian homes, high-efficiency electric systems can now compete with or outperform gas heating in running costs.
Hot water systems
Hot water is another major cost driver.
Gas hot water: Lower running costs than traditional electric storage systems, but still affected by daily supply charges.
Electric hot water (heat pump): Highly efficient systems can use significantly less energy, often making them cheaper than gas over time.
Heat pump systems are increasingly making electricity the lower-cost option.
Cooking costs
Cooking uses less energy overall, so differences are smaller.
Gas cooktops: Slightly cheaper to run in some cases and offer fast heat control.
Electric/induction cooktops: Induction is highly efficient (up to ~85–90%), often making it cheaper than gas for everyday use.
Cooking costs are generally low either way, but induction is often the most efficient option.
Overall household comparison
When combining all household energy use, gas can be cheaper in older homes with efficient gas appliances and no solar.
Electricity is often cheaper in modern homes using:
heat pumps
induction cooking
solar panels
The biggest shift in Australia is that electricity efficiency is improving faster than gas price advantages.
Tips to Reduce Your Energy Costs
Reducing energy bills in Australia is not just about choosing between gas and electricity; it’s about improving efficiency, reducing waste, and using energy at the right time. Small changes can significantly lower both gas and electricity costs over time.
1. Improve home energy efficiency
Appliance efficiency has a major impact on long-term energy costs.
Upgrade outdated heating, cooling, and hot water systems to improve overall efficiency.
Switch to induction cooktops instead of gas or electric coil
Upgrade to heat pump hot water systems
Efficient appliances use less energy to deliver the same output, reducing both gas and electricity bills.
2. Reduce heating and cooling demand
Heating and cooling are usually the biggest energy costs in Australian homes.
Improve insulation in ceilings and walls
Seal gaps around doors and windows
Use curtains or blinds to retain heat in winter and block heat in summer
Reducing demand often saves more than switching energy types.
3. Take advantage of off-peak electricity
Electricity pricing varies throughout the day in many areas.
Use hot water systems on off-peak tariffs
Run dishwashers, washing machines, and dryers at night
Shift high-energy usage away from peak hours
Time-of-use pricing can significantly lower electricity bills.
For households looking to store energy more effectively and manage electricity use, a portable power station can provide a flexible way to store excess electricity and use it during peak demand or power outages.
For users who need reliable backup for daily household use, the EcoFlow DELTA 3 Ultra Plus Portable Power Station offers scalable storage and reliable performance for most home appliances, making it suitable for both everyday use and emergency backup scenarios. Multiple charging options, including solar and AC charging, give households more flexibility to manage energy costs and make better use of available power sources.
For homeowners seeking a higher-capacity home energy backup solution, the EcoFlow DELTA Pro Ultra Whole-home Backup Battery offers greater energy storage and output capacity. With a powerful AC output, it can support energy-intensive household appliances, including larger ducted air conditioning systems. Its expandable capacity allows households to store electricity when lower-cost energy is available, such as excess solar generation, and use it during periods of higher demand to better manage energy costs.
To integrate the system into your home power circuit, installation is typically completed using an EcoFlow Transfer Switch, which allows the DELTA Pro Ultra to safely and seamlessly supply backup power to essential circuits during outages. Check out the installation tutorial for guidance.
4. Use solar energy where possible
Rooftop solar can dramatically reduce electricity costs.
Use appliances during daylight hours
Maximise self-consumption instead of exporting power
Consider battery storage for evening usage
5. Maintain appliances regularly
Poor maintenance reduces efficiency and increases energy use.
Service gas heaters and hot water systems regularly
Clean filters in air conditioners
Check for leaks or faulty components
Well-maintained systems use less energy and last longer.
6. Avoid unnecessary gas supply costs
Even if gas usage is low, fixed charges still apply.
Consider whether keeping the gas connection is worthwhile
Switching fully to electricity can eliminate gas supply charges
Avoid paying for unused gas infrastructure
Conclusion
There is no single answer to whether gas or electricity is cheaper in Australia, as the outcome depends on appliance efficiency, household usage, and local pricing conditions. While gas can still offer lower unit prices in some cases, electricity is increasingly more cost-effective in modern homes thanks to efficient technologies like heat pumps, induction cooking, and solar power. Overall, whether gas is more expensive than electricity depends on how energy is used, but for many Australian households, electricity is now the cheaper long-term option.
FAQs
How much does it cost to run gas central heating for 1 hour?
The cost of running gas central heating for 1 hour in Australia depends on the heater size, efficiency, home insulation and local gas tariffs. A typical ducted gas heating system may use around 20–25 MJ of gas per hour, which often works out to roughly $0.70–$1.20 per hour based on common residential gas rates. Larger homes, older systems or colder conditions may result in higher running costs.
What is the biggest factor affecting energy bills in Australian homes?
Energy usage patterns usually have the biggest impact on household bills. Heating and cooling, hot water systems and appliance efficiency can significantly affect energy consumption. Factors such as home insulation, weather conditions and electricity tariffs also influence the final cost.
Is induction cheaper than gas cooking in Australia?
Yes, induction cooking can be cheaper than gas cooking in many Australian homes. Although gas may have lower unit energy costs, induction cooktops are more efficient because they transfer heat directly to cookware. Homes with rooftop solar or lower-cost electricity plans may achieve greater savings over time, while actual costs depend on energy tariffs, cooking habits and appliance efficiency.