HomeFinanceSave on gas bills: Why more homeowners are switching to LPG

Save on gas bills: Why more homeowners are switching to LPG

You don’t need to be told the cost of living is rising. Food costs are soaring. Petrol prices are out of control. So, too, it seems, energy costs. But what if we told you there was a way you could save on gas bills?

More Australian households are abandoning natural gas in favour of LPG energy plans with some minor set-up costs, Aussies are savings hundreds on their gas bills each year, getting more value for each megajoule with a sustainable gas provider, such as Elgas.

Is LPG cheaper than natural gas?

While natural gas is typically cheaper than LPG for the actual gas, natural gas suppliers charge you daily for being connected to the mains gas network. This charge is around $1.22 per day and can exceed $400 per year – without you even using any gas.

Higher natural gas tariffs and daily service charges may make LPG the best and cheapest choice.

According to Elgas research, if you were to convert your cooking unit (oven/stove) to LPG, you could pay less than $200 per year compared to $539 per year for natural gas.

LPG – or liquefied petroleum gas – is more efficient, too. LPG has an energy content of 93.2MJ/m³ versus natural gas at 38.7MJ/m³.

No wonder more people are abandoning natural gas and choosing to go with LPG.

Are LPG bottles more efficient than mains gas?

There are about 2200MJ in a standard 45kg gas bottle. Low-volume users will use about 91 per cent of a 45kg LPG gas bottle for cooking.

The LPG service (rental) charge for a 45kg gas bottle is between $35 and $45 per year. That’s a huge 90 per cent in savings compared to a $446 natural gas supply charge, and you’re already saving around 90 per cent on your gas bills for food preparation.

If you only use gas for cooking, then it is typically less expensive to have LPG.

A small family would break even if they use gas for both hot water and cooking, based on 10,000MJ per year.

Cost of switching to LPG

With LPG, you only need to install a regulator, possibly a changeover valve and the gas pipework on and within your home.

Virtually all gas appliances are available in both LPG and natural gas versions, with little difference in pricing at point of sale.

Converting gas appliances from natural gas to LPG or vice versa is a common practice.

This means switching back to LPG is not cost prohibitive.

Conversion kits are typically available from the manufacturers, but gasfitters must do the conversions.

Of course, it pays to do the maths before making any decision on the type of gas you use.

Heavy gas users may be better off with natural gas. But homes with modest gas consumption, and especially ones with gas for cooking only, may well be better off with LPG.

Are there any other benefits of LPG?

Efficiency

LPG can heat your home more efficiently, giving you better value for your money. The same goes for your hot water system, as LPG hot water is instant and not constantly heating a massive tank of water.

Convenience

LPG is also a convenient energy source, especially for those in rural, coastal or regional areas. Simply order by phone or online from Elgas, and in no time at all you’ll get free doorstep delivery.

Easier to track and regulate your usage

Because it’s stored in cylinders, you can manage your usage in accordance with your budget.

Better for the planet

LPG is a sustainable energy source. Its low sulphur content, low emissions of black carbon and no spills, make it much cleaner than natural gas. A switch to LPG Australia-wide could halve the cost of energy and household gas emissions. So, you’ll save on your gas bills and keep our air cleaner.

What’s the best LPG plan for me?

Elgas has three residential LPG home plans to suit your usage and budget. All three plans include free delivery of 45kg LPG cylinders to your doorstep. And if you choose the variable plan, you’ll get $60 off your first two bottles.

The Variable LPG plan gives you flexibility and great prices. The variable rate moves in line with the market price for LPG, includes a $120 discount and no lock-in contract.

The Fixed Elgas LPG plan locks in the current market rate for 24 months, which makes it easier to budget for your energy bill.

The Green LPG plan is 100 per cent carbon neutral. Elgas offsets the carbon emissions from your gas usage for the life of your contract (12 months). You’ll save money and be using an energy option that’s better for the planet.

Finding the right energy plan could help you save on gas bills. The friendly team at Elgas can advise whether it’s worth you switching and, if so, will find the right plan for you.

Disclosure: Elgas is a YourLifeChoices affiliate. YourLifeChoices is dedicated to keeping our content and resources free. To that end, we may earn money should members click some of the links on this page.

YourLifeChoices Writers
YourLifeChoices Writershttp://www.yourlifechoices.com.au/
YourLifeChoices' team of writers specialise in content that helps Australian over-50s make better decisions about wealth, health, travel and life. It's all in the name. For 22 years, we've been helping older Australians live their best lives.
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