Compare natural gas prices in Queensland

In this Canstar Blue report, we show consumers in South East Queensland what they can expect to pay for natural gas in the state. We also share what households should look out for when choosing the right gas deal for them.

The Sunshine State has roughly 187,000 natural gas customers, and if you’re one of them, you may have noticed there aren’t as many suppliers compared to the other eastern states. Despite having fewer gas providers to choose from, it shouldn’t discourage you from searching for a better deal. To help you compare gas prices in Queensland, we’ve used our database to bring you the cheapest deals currently in market.

While we do our best to list up to date pricing, it’s vital that you treat the below information as a general guide only. We use a specific set of assumptions for this cost comparison, that apply to one particular area of Brisbane. That’s why it’s best to use our gas comparison tool where you can input your details to unlock a range of quotes available in your area.

Cheap gas deals Queensland

Which providers offer the cheapest gas prices in Brisbane?

Our price calculations suggest that Origin Energy, GloBird Energy and Alinta Energy currently provide the cheapest gas deals in Queensland, according to an assumed household gas usage of about 6,842MJ a year. Remember that gas prices can and do change frequently, and that costs will vary depending on a household’s usage habits.

The following information is to be used as a general indicator of prices based on retailers who are currently listed on our database. Calculations factor in usage and supply rates, plus any conditional discounts available on the provider’s cheapest market offer.

Understanding your gas bill

Like an electricity bill, gas bills usually consist of a few charges worth getting your head around. The two main components of a gas bill are usage charges and supply charges. Depending on the retailer and gas deal, there may also be other fees and charges.

• Usage charges: A charge which refers to the amount of gas a household uses, which is measured in megajoules (MJ). Some products will charge gas usage at a single rate or ‘flat rate’, while others may charge gas usage in blocks – known as a ‘block rate tariff’. Plans on a single rate tariff will be charged the same rate regardless of the time of day or how much gas is consumed, while a block rate tariff will charge usage according to the quantity of gas consumed. For example, the first block may be charged 3c/MJ for the first 20MJ used, 2.7c/MJ for the next 20MJ of usage, and 2.5c/MJ for the remainder.
• Supply charges: Refers to a daily, ongoing charge, typically around 70 to 90 cents per day. This charge covers the cost of being connected to the gas mains or network, and applies regardless of how much gas a household consumes. Supply charges can make up a considerable portion of a gas bill, particularly for customers who don’t use a lot of gas.
• Discounts: Depending on the gas plan, discounts will either be conditional or guaranteed. Conditional discounts require customers to satisfy the criteria of a plan, like paying on time, while a guaranteed discount does not require customers to do anything, other than pay their bills. Some discounts will apply to the entire bill (usage and supply charges), while others may only apply to the usage charges.
• Other fees and charges: Late payment fees, paper billing fees, credit card surcharges are all types of additional charges that can creep onto a gas invoice. A breakdown of these fees can be found within the gas price fact sheets.

Type of gas contracts in Queensland

The type of gas contract you’re on will normally determine what’s included in your plan, as well as how competitive the gas rates are. In Queensland, there are two types of gas contracts – standard contracts and market offers.

• Standard contracts: A basic contract regulated by the QLD Government that includes terms and conditions which can’t be changed by the retailer. Customers who haven’t changed gas retailers in a long time will likely be on a standard contract. These contracts are usually less competitive than market offers.
• Market retail offers: Contracts that are set by retailers, often including discounts and cheaper gas rates. Though competitive, market contracts can change rates at the retailer’s discretion, provided customers have been notified in advance. Market offers normally only have a benefit period of 12 or 24 months, meaning customers may be moved onto a standard contract after this period finishes.

Is gas cheaper than electricity?

The difference of cost between gas and electricity will usually come down to how much gas a customer uses and natural gas supply charges. Remember, gas only powers specific appliances within a home, like hot water systems. Given that gas supply charges cost around 70 to 90 cents a day, customers will need to ensure it’s an affordable source of energy on top of household electricity costs.

According to energy.gov.au, Queensland uses the least amount of gas per household in Australia. This could explain why there are only a small handful of natural gas retailers in the state, as well as why gas prices are higher than other states. Customers with a mains gas supply will need to think about the amount of gas they use, and whether or not it’s worth paying for both gas and electricity. Customers with larger gas consumption needs may benefit the most, while smaller residential households who use gas less frequently could be better off just paying for electricity.

Which gas supplier is rated highest in Queensland?

Whether you’re cooking dinner or heating water, the natural gas supplied to your home is all the same. So, is it a case of simply picking a supplier with the cheapest deal? At times, picking on price alone makes sense, but it isn’t the only factor to consider when choosing a gas retailer, especially if it’s at the expense of something important like customer service. That’s why we’ve done most of the homework for you by releasing our annual review of QLD natural gas suppliers. Click the link below to see who reigns supreme.

Compare QLD Gas Providers