Gas vs electricity: What will cost more this summer?

If you’ve been watching energy prices climb and wondering which utility will hurt your bank account, more this summer - you’re not alone.

With rising costs across the board, Aussie households are now asking:

 “Should I be worried more about gas or electricity this summer?”

Whether you’re running the aircon, heating water for showers, or cooking up dinner, both gas and electricity can burn a hole in your budget - but which one hits harder right now?

Let’s break it down.

What’s happening with gas prices in Australia?

Gas prices in Australia have been volatile in recent years. Key factors include:

  • Global demand pressures (especially after the war in Ukraine)
  • Domestic supply concerns
  • Rising transport and infrastructure costs
  • Fewer long-term supply contracts keeping prices stable

In many parts of Australia, residential gas prices have increased by 15–30% over the last two years. And while prices are starting to level out, they’re still high - especially for homes using gas for heating, hot water, or cooking.

Add to that: gas is often billed quarterly, which means the hit to your wallet can come as a bit of a shock.

And what about electricity?

Electricity prices have also seen big jumps in recent years - driven by:

  • Transition away from coal-fired power
  • Delays in renewable energy rollout
  • Wholesale price volatility
  • Network upgrades and infrastructure costs
  • Rising demand from electric appliances, cooling, and EVs

But unlike gas, electricity has more competition and more flexibility for customers to switch plans. If you're proactive, it's possible to reduce your power bill significantly - something that's harder to do with gas.

So, what’s the takeaway?

  • Air conditioning is the biggest summer cost driver, and it's electric.
  • If you rely on gas for hot water, you’ll still see a solid charge on your gas bill - especially in larger households.
  • Electricity use spikes in summer, especially during heatwaves - and that can lead to bill shock if you’re not on a competitive plan.

Which is more expensive per unit?

Electricity

  • Average cost: 30 - 45 cents per kWh (depending on your provider and state)
  • Can vary based on time-of-use or controlled load tariffs
  • Solar panels and smart usage can reduce costs significantly

Gas

  • Average cost: 3 - 5 cents per MJ (megajoule)
  • Doesn’t fluctuate during the day like electricity
  • Harder to offset unless you go all-electric

BUT - and it’s a big but - appliances vary in how much energy they use.

For example:

  • A gas water heater might use 20–30 MJ/day
  • An efficient electric heat pump might only use 2 - 4 kWh/day

So, while gas looks cheaper per unit, electric appliances are often much more efficient, meaning they may still be cheaper to run overall.

Two households, two outcomes

Household A: Mostly gas

  • Gas hot water
  • Gas stove
  • Portable electric fan
  • No aircon

Expected summer costs: Moderate gas bill, low electricity

Household B: All-electric

  • Reverse-cycle aircon
  • Electric cooktop
  • Heat pump hot water
  • Solar panels

Expected summer costs: High electricity usage, but potentially lower bills if on a good plan or using solar during the day

So, which will cost you more?

It depends on your setup. But in most Aussie homes:

  • Electricity drives bigger summer bills, especially due to cooling
  • Gas bills remain steady or spike slightly, especially if you’re using gas for hot water daily
  • Going all-electric + solar can help offset summer costs - and future-proof your home

Tips to keep bills down this summer

  • Compare energy plans (electricity AND gas) - don’t stay loyal to expensive providers
  • Use off-peak electricity if you have time-of-use rates
  • Set your aircon to 24°C - every degree lower adds ~10% to your bill
  • Run appliances during daylight if you have solar
  • Take shorter, cooler showers to reduce hot water use
  • Consider switching gas appliances to electric when they need replacing

Want to see if you’re paying too much?

Even if you’re stuck with high usage, you might still be able to save by switching plans.

Call Compare Energy on 1300 790 106

We’ll help you:

  • Check if you're overpaying for gas or electricity
  • Compare better plans in your area
  • Understand if switching to all-electric makes financial sense for you

Gas and electricity are both feeling the pressure right now - but electricity is more likely to spike in summer due to air conditioning and cooling costs.

If you're already mostly electric, now’s the time to:

  • Get on a better plan
  • Use smart energy habits
  • Plan for solar or battery upgrades if possible

And if you're still using gas? It might be time to start thinking about what comes next.