Does natural gas cost less than LPG in Sydney?

At PVS Plumbing we do gas work across the Penrith LGA, the Hawkesbury and the Lower Blue Mountains, and we see both setups every week. The right choice for your neighbour is not always the right choice for you.

The two costs that decide it

Every gas bill is really two numbers:

• A fixed cost. For natural gas, that is the daily supply charge. For LPG, there is no mains daily supply charge, but cylinder rental, delivery and other supplier fees may apply.
• A usage cost. This is what you pay for the gas you actually burn. Unit for unit, LPG costs more than natural gas.

Use a lot of gas, and the low usage rate on natural gas swamps the daily supply charge. Natural gas wins. Barely touch it, and the natural gas supply charge can make up much of your annual bill. LPG may work out to cost less, depending on your bottle costs and supplier fees.

Is LPG more expensive than natural gas?

Compare both fuels on the same energy basis before deciding. The price per unit is only part of the total: supply charges, cylinder fees and delivery costs can also affect the result. LPG is piped nowhere. It is bottled, trucked and delivered, and every one of those steps adds cost to the kilogram. Natural gas comes down a main and sells at a lower rate.

But more expensive per unit is not the same as more expensive overall. A home that only uses gas for cooking might burn so little that the natural gas supply charge alone costs more over a year than the entire LPG spend.

So the straight answer on whether natural gas costs less than LPG: natural gas costs less to run per unit, but LPG can be cost-effective in total for a light user. Work out which camp you are in before you assume mains gas is the better deal by default.

How much does LPG cost per month for a household in NSW?

Monthly LPG cost moves around a lot, because it tracks your usage rather than a flat fee. A home on a cooktop alone might go through a 45kg bottle every few months, so the monthly cost is small. Run LPG hot water, cooking and a gas heater through a cold winter, and you will empty bottles far faster and pay a good deal more.

Rather than quote a figure that will be wrong for half our readers, here is how to size up your own, in three steps:

1. Count your gas appliances. Cooktop only is light use. Add hot water and you are moderate. Add space heating and you are a heavy user.
2. Check how often you swap or refill bottles. Each 45kg bottle holds a known amount of energy, so refill frequency is the clearest guide to your real monthly spend.
3. Factor in the season. Gas heating pushes winter usage up sharply, then it drops away once the weather warms.

Should I use natural gas or LPG for my hot water system?

For gas hot water, natural gas is usually a long-running, long-term fuel, because hot water is a steady year-round load. Heating water is one of the biggest gas demands in a home, so the lower natural gas usage rate adds up month after month. If mains gas is already connected, natural gas hot water is generally the sensible call.

LPG hot water is still a perfectly good option where mains gas is not available, which is common on acreage and across parts of the Hawkesbury and the Lower Blue Mountains. A continuous flow system heats water on demand rather than storing hot water in a tank.

We install a range of hot water systems and help you choose a model suited to your home and available energy supply. The right model depends on your home and available energy supply. For gas appliances, check the identification plate for the correct fuel type. Some models can be converted between natural gas and LPG; others need replacing. We check suitability and explain your options when we quote. Planning an installation or fuel conversion? Our guide to gas compliance certificates in NSW explains the paperwork you should receive when the work is complete.

Is LPG good for gas cooktops?

Yes. A cooktop designed or correctly converted for LPG is an option for homes using bottled gas.

For a home that uses gas only for cooking, LPG is often the lower cost choice. Cooking sips gas compared with hot water or heating, so a cooktop-only household may never burn enough to justify a daily natural gas supply charge. A single bottle can last a very long time.

Which is better for heating a home, natural gas or LPG?

For whole-home or regular heating, natural gas is generally a cost-effective fuel. Heating is a heavy, sustained load through winter, and the more an appliance burns, the more that lower natural gas usage rate works in your favour. That is exactly the pattern a gas heater creates over a cold Penrith July.

If you heat with gas most evenings from May to September, compare the annual cost of natural gas with LPG using your expected usage, current fuel quotes and all supply fees.

LPG still earns its keep. Portable and flued LPG heaters suit homes off the mains network, holiday places, or a room used now and then rather than all day. Light, intermittent heating narrows the gap, and LPG stays competitive.

The deciding question is the one running through this whole article: how much do you actually burn? Heavy, regular heating points to natural gas. Occasional heating keeps LPG in the mix.

Can I switch from natural gas to LPG?

Switching between natural gas and LPG may be possible, depending on mains availability and whether your appliances can be converted or need replacing. A licensed gas fitter will assess the appliances and supply equipment, carry out the work and testing, and provide the required certification.

The main steps:

• Appliance suitability. Each appliance needs checking to confirm whether conversion is possible. The work depends on the model and the manufacturer’s instructions.
• Supply changes. LPG requires suitable cylinders, a regulator and compliant siting. Natural gas requires an available mains connection and meter.
• Supply checks and testing. Your gas fitter will assess the pipe sizing and supply equipment for the proposed installation, then carry out the required testing.
• Final checks and paperwork. Ask your gas fitter to explain the testing and documentation included in your fuel-switching quote.

People usually switch for a reason. Moving to a property without mains gas, wanting to drop a supply charge they rarely use, or renovating a kitchen and rethinking the lot. Before you commit either way, run the numbers on your real usage, because the switch carries an upfront cost.

What switching costs

The cost of switching depends on how many appliances need converting or replacing, the length and complexity of the pipe runs, and how easy the site is to work on. A straightforward cooktop conversion sits at the small end. A full change of fuel across hot water, cooking and heating sits well above it. Rather than throw out a number that would be wrong for most homes, we give you a fixed-price quote before any work starts, so you know the figure up front rather than copping a surprise at the end.

Key takeaways

• Compare usage charges and fixed costs. Natural gas includes a daily supply charge. LPG has no mains daily supply charge, but other supplier fees may apply. The best option depends on your usage and quoted prices.
• Hot water and regular heating favour natural gas, because they are large, steady loads.
• LPG cooktop-only homes may cost less, depending on bottle costs, supplier fees and how much gas they use.
• Switching fuel requires an appliance suitability check, any necessary conversion or replacement, and the required testing and certification.
• Get a fixed-price quote before deciding, because the real cost turns on your appliances, pipe runs and site.

If you are weighing up whether natural gas or LPG is the best option for your home, the fastest way to a clear answer is to have a licensed gas fitter look at your appliances and usage. The team at PVS Plumbing does gas fitting across Penrith, the Hawkesbury and the Lower Blue Mountains, with fixed-price quotes before work starts and a 12-month workmanship guarantee on our installs. Penrith plumbing, done your way. Get in touch for a straight answer on your setup.