Many Aussies are feeling the pinch of rising petroleum and electricity costs, so is gas the better alternative?
Gas has its own list of benefits, making it a great alternative to electricity for stoves and hot water systems. Yet there’s a lot more to gas than you probably think. Canstar Blue gives you a full run down on gas use in Australia.
What is the difference between LPG and Natural Gas?
The term ‘gas’ is used interchangeably between Liquid Petroleum Gas (LPG) and Natural Gas (LNG). Though they are different gases, they do share similarities and can sometimes be used interchangeably .
LPG is propane gas, while LNG is methane gas. LPG has a higher energy content and less of it is required to create the same amount of heat as LNG. LPG is denser than LNG and air and is most often recognised as the gas bottle connected to the barbecue. LNG, however, is usually connected directly to your home through the gas mains network as it is not stable enough to be transported in gas cylinders.
Most homes in New South Wales, Victoria, Queensland, South Australia and Western Australia will have access to a natural gas connection. You can compare gas plans below.
Gas Plans Compared in VIC
Here are some of the cheapest gas deals on our database for VIC. These estimated annual costs are based on the Australian Gas Network in Melbourne and yearly gas usage of 29,830MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Gas Plans Compared in NSW
Here are some of the cheapest gas deals on our database for NSW. These estimated annual costs are based on the Jemena Gas Network in Sydney and yearly gas usage of 18,542MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Gas Plans Compared in WA
Here are some of the cheapest gas deals on our database for WA. These estimated annual costs are based on the ATCO Network in Perth and yearly gas usage of 7,672 (units), but prices may vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Gas Plans Compared in SA
Here are some of the cheapest gas deals on our database for SA. These estimated annual costs are based on the Australian Gas Network in Adelaide and yearly gas usage of 11,875MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Gas Plans Compared in QLD
Here are some of the cheapest gas deals on our database for QLD. These estimated annual costs are based on the Australian Gas Network in Brisbane and yearly gas usage of 6,842MJ, but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest estimated cost. This table includes products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
What are common uses for LPG?
LPG is a favourite fuel in many households in Australia. Its primary uses are:
- Cooking: stovetops, ovens and barbecues
- Heating and cooling: air conditioners and heaters
- Hot water: used to heat water around the home
What are some other uses for LPG?
The most common uses of LPG gas in homes are heating, cooking and providing hot water, but there are also some uses for gas too. For example, you can buy a gas-powered clothes dryer. Gas-powered dryers quickly and efficiently dry clothes and while the upfront cost is more than a normal dryer, they are cheaper to run. Fridges that are powered by gas rather than electricity are also available. These models are popular, for camping as you don’t need a power socket, as well as for everyday use in the home. They work by heating up and then rapidly cooling ammonia.
What are the strengths and weaknesses of LPG?
If you are thinking of using gas in your home, it’s important to know the positives and negatives to using LPG as a fuel source.
Here are the advantages of using LPG:
- It’s cleaner than other fossil fuels. It emits less carbon dioxide and other heavy ozone-harmful compounds.
- It’s economical. The costs of powering your home with LPG can be considerably lower compared to electricity.
- For automotive purposes, the price of a litre of LPG is often half that of regular unleaded fuel. It can work out to be economical if you install LPG in your vehicle and you rack up a lot of mileage.
- LPG doesn’t deteriorate over time and can be easily transported in safe, regulated canisters. This makes long term storage of LPG possible – something that is less feasible with unleaded fuel.
On the other hand, there are also a few downsides to look out for.
- Harmful emissions with LPG may be less than coal or oil, but it is not a completely clean energy.
- LPG still cannot trump diesel or gasoline for energy density, and as such requires more of it to go the same distance. LPG is about 25% less dense than regular unleaded, and as such will use roughly 25% more fuel per 100km.
- Initial fit out of LPG systems can be costly. Cars with LPG need to have their tanks serviced once every 10 years by a licensed LPG technician, which can also be costly.
- When fueling up, there is much more ‘seepage’ into the air than gasoline. While less volatile than gasoline, this poses hazards and increases chances of explosion and fire.
Summary of pros and cons of LPG
| Pros | Cons |
|---|---|
| LPG is cheaper than unleaded fuel per litre | LPG is 25% less dense than unleaded, meaning your fuel economy is 25% worse off |
| LPG is a cleaner alternative to coal | LPG still emits greenhouse gases |
| Home furnaces last longer than gasoline | LPG installation often requires licensed technicians, which can be costly |
| LPG is less volatile than gasoline | LPG has more ‘seepage’ in the air when fueling up |
What’s the future of gas in Australia?
Australia has enormous gas reserves, so much so that we produce much more than we consume, exporting the rest. Even so, gas remains one of the top three forms of energy in the country, accounting for 25.8% of total energy usage in 2022-23.
With Australia’s commitment to reach net zero emissions by 2050, the Future Gas Strategy was created in May 2024 by the Department of Industry, Science and Resources. The strategy outlines the government’s commitment to continue to export gases like LNG, use gas as a stepping stone to renewable energy and keep gas prices affordable. According to this report, the gas industry will remain a major player in Australia’s energy market for decades to come.
While gas isn’t the right choice for everyone, it can be favourable in certain scenarios. Make sure to weigh up the pros and cons, consider electricity and gas prices in your area, and talk to your supplier before you make any decision about your energy usage.
Original Author: Harrison Astbury
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