Is LPG Cheaper Than Natural Gas? Compare Gas Prices Near Me

Is LPG Cheaper Than Natural Gas? Compare Gas Prices Near Me – Best Gas Prices with LPG

Is LPG cheaper than natural gas? LPG vs natural gas price comparisons find best gas prices for LPG versus natural gas in many cases.

Natural gas is generally has the best gas prices for the gas itself.

However, the natural gas daily supply charge can exceed $400 per year, before any gas is used.

Total gas cost under $200 per year for LPG vs natural gas price of $539 per year, in one cooking only example, so you need to compare gas prices with everything included.

LPG compared to natural gas has more than double the energy content at 93.2MJ/m³ vs natural gas at 38.7MJ/m³, so LPG is much more gas cost efficient than natural gas and is now where to find best gas prices in many cases.

Comparing LPG gas price vs natural gas prices, natural gas prices are no longer the presumed cheap gas prices option.

Higher natural gas price tariffs and daily gas cost service charges make LPG the best gas prices in many situations.

Gas prices will vary based on the gas price tariffs in your area but the LPG gas price vs natural gas prices now finds LPG the best gas prices compared to natural gas prices in many situations.

The daily gas cost supply charge is a charge that applies for supplying gas to your premises for each day of the billing period, regardless of how much gas you use and can be a gas cost as high as $1.22 per day¹ or $446 per year and this doesn’t even include the gas prices.

Add in just the gas price for cooking and it totals $539 total annual gas cost for natural gas. The corresponding LPG gas cost would be well under $200.

The gas prices world has been turned upside down with people abandoning natural gas and choosing to go with LPG, where they find best gas prices.

Whilst it may sound pretty implausible, based on old wisdom, the reasoning is simple — they are saving money when they compare gas prices.

Is LPG the Cheap Gas Prices Compared to Natural Gas Prices

You can see how LPG gas price is better than natural gas prices when you buy a cooktop.

Cooktops usually come with two sets of gas jets.

The ones for LPG have a much smaller hole and use less gas.

That’s because LPG contains more heat energy, with 93.2MJ/m³ vs natural gas at 38.7MJ/m³ (2572 Btu/ft³ vs 1011 Btu/ft³), making the LPG gas cost more economical.

Does LPG Have the Best Gas Prices Compared to Natural Gas Prices or Is It More Expensive

LPG may have the best gas prices when you include all of the gas price fees and gas cost charges.

When considering LPG gas price vs natural gas price (gas cost), times have changed and natural gas is no longer has the presumed best gas prices.

New higher natural gas price tariffs, daily supply gas cost charge and the average LPG gas cost vs natural gas cost (gas price) gives LPG the best gas prices versus natural gas prices in many situations.

LPG gas prices are not necessarily more expensive than natural gas prices.

Many customers now find that it is cheaper to go with LPG when they compare gas prices.

For some low volume users, the total gas cost for LPG is cheaper and may be less than half of the gas cost of the natural gas, because of the natural gas daily gas cost supply charge.

The relative positions of LPG gas price vs natural gas prices has changed over time.

Due to exports, natural gas prices are now driven upward by the world LNG price – Liquefied Natural Gas price.

The daily supply gas cost charge has also gone up. It is a gas cost charge that applies for supplying gas to your premises for each day of the billing period, regardless of how much gas you use.

For many years, people switched from LPG to natural gas as soon as it became available on their street without even comparing gas prices.

The old LPG vs natural gas cost assumption was that LPG gas price was more expensive than natural gas prices.

The new truth is that market changes make the LPG gas price cheaper than natural gas prices under numerous circumstances.

With new higher natural gas price tariffs, fees and the average LPG gas price vs natural gas cost (gas price), this may now be a false assumption.

LPG Compared to Natural Gas – LPG Gas Price vs Mains Gas Prices – Town Gas vs LPG

If you want to compare LPG gas price to natural gas prices (LPG vs mains gas or town gas vs LPG) gas cost, energy content is the best way.

MJ are used to express the energy content of gas and are one way that LPG gas cost and natural gas cost can be compared.

As an example to use for comparison of LPG vs natural gas cost (gas price), the energy required for cooking is only 2,000MJ/year, according to IPART — “But gas usage also depends on what it is used for, and households that use gas only for cooking only use about 500 MJ per quarter.”

Megajoules, often expressed as just MJ, are derived units of energy in the International System of Units.

The megajoules per hour (MJ/hr) ratings on appliances actually indicate the gas consumption of the appliance, not the heat output.

The New Reality of the Best Gas Prices

Things have changed in the last few years regarding LPG gas prices and natural gas prices.

The gas cost (gas price) of natural gas has been climbing whilst the LPG gas price has remained relatively stable.

So, LPG gas price can be cheaper than natural gas prices.

But why?

The Culprit in Many Cases is the “Daily Supply Charge”.

As previously explained, the daily supply charge is a gas price charge that applies for supplying gas to your premises for each day of the billing period, regardless of how much gas you use.

It does not include the gas price, which is an additional gas cost charge.

For example, in QLD these gas cost charges can be as high as $446 per year and this doesn’t even include the gas prices.

So, on this particular gas price tariff the natural gas cost (for 2,000MJ of gas) works out to an additional $93 for a total annual gas cost of $539 — and that’s just for cooking.

How Much is the Gas Cost for Natural Gas

Determining the natural gas cost requires an understanding of the applicable natural gas price tariffs and gas cost charges.

The gas price includes the daily supply charge plus the gas cost of the natural gas itself.

The LPG gas prices vs natural gas prices (LPG price vs mains gas prices) gas cost can be affected by volume and the season.

One Gas Bottle Can Last Over a Year

There are about 2200MJ in a standard 45kg gas bottle.

The estimated 2000MJ/year needed for cooking is only about 91% of a 45kg LPG gas bottle.

So, one bottle typically lasts more than a year when used just for food preparation.

The LPG service charge (sometimes called rental) for a 45kg gas bottle is typically a gas cost of between $35 and $45 per year, a huge 90% savings compared to a $446 natural gas cost supply charge.

The gas cost of the LPG can vary a bit, by location, but it still remains very competitive with the new higher natural gas price tariffs.

The bottom line:

The end result is that for modest volume users, like cooking only customers, it is typically LPG with the best gas prices.

In fact, the total gas cost of the LPG for cooking may be less than half of the gas cost of the natural gas prices.

Breakeven Volume – Breakeven Gas Price

Based on this gas price tariff example, a small family would probably be break even on LPG gas cost vs natural gas cost if they had both gas hot water and cooking, based on 10,000MJ per year.

Different gas price tariffs, fees, gas prices, family sizes and mixes of appliances would lead to various different consumption and gas cost results.

Gas Cost of Switching to Natural Gas

The gas cost of switching to natural gas and connecting to the natural gas main can be very expensive and varies from property to property and with the gas distribution network owner.

Gas cost of switching to natural gas includes actual connection to the main or a mains extension, required service pipe work, the supply and installation of a meter and a pressure regulator.

There may also be excavation and restoration of council foot paths and roads, as well as possible traffic control costs.  Your home’s garden and landscaping may also need to be dug up and subsequently restored.

It gets better:

This is a gas cost that is virtually avoided with bottled gas prices.

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

What if Natural Gas Mains are Added to Your Street?

Some homeowners live where gas mains are installed after they already have LPG.

They need to remember that the same gas cost of connection apply, if they are contemplating LPG vs natural gas cost – gas price, as on an existing home.

So, even if the monthly gas cost of natural gas is a bit less, it could take many years to recover the initial connection gas cost and the gas cost of converting the appliances.

You might save by doing nothing:

Homes with modest gas consumption may actually be costing even more money over time, with natural gas, based on the previously mentioned gas cost fees and gas price tariffs.

Appliances are Not an Issue

Virtually all gas appliances are available in both LPG and natural gas versions.

The cost of the two versions is typically the same, too.

Difference Between LPG and Natural Gas

The difference between LPG and natural gas is that they are different gases with different distribution.

LPG is propane vs natural gas as methane.

Gas bottles are used to supply LPG whilst natural gas is conveyed by pipeline.

There are three main differences in the way that LPG vs natural gas are burnt and weight vs air..

The first difference is in the energy content.

LPG has a higher calorific value, or energy content, so less gas is required to produce the same amount of heat.

The second difference is in the oxygen to gas ratio required for proper combustion.

LPG (propane) requires an oxygen to gas ratio of approximately 25 to 1.

Natural gas (methane) requires a ratio of around 10 to 1.

To achieve this difference, LPG is typically provided in a smaller quantity but at a higher pressure, drawing more oxygen with it into the burner.

The final difference is that natural gas has a safety advantage vs LPG.

As natural gas is lighter than air, in the event of a leak, natural gas will dissipate more quickly.

As LPG (propane) is heavier than air, it may collect in basements or near the floor of a home.

Town Gas vs LPG

Comparing town gas vs LPG,  LPG is more dense (has a higher specific gravity) than town gas.

Town gas (methane) is less dense than air, at a relative density of 0.5537 to 1. LPG (propane) is more dense than air, at a relative density of 1.5219 to 1.

Energy content of LPG vs town gas (93.2MJ/m³ vs 38.7MJ/m³) has LPG with a higher energy content.

Converting LPG and Natural Gas Appliances

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

So, switching back to LPG is not cost prohibitive.

To convert from one gas to another, the two most common alterations are the sizing of the gas injector (gas jet) and the adjustment of pressure.

This isn’t hard:

Conversion kits are typically available from the manufacturers and gas fitters must do the conversions.

Do the Math! Compare Gas Prices

LPG gas is not more expensive than natural gas, LPG often has the best gas prices.

Many customers now find best gas prices with LPG vs natural gas.

LPG gas price is now better because it frequently has a lower gas cost than natural gas.

LPG is better when it comes to availability and portability.

LPG is also better, with a higher energy content.

Finally, LPG is better because you can get it virtually everywhere.

Assuming that you live in an area where natural gas is also available, it pays to compare gas prices before making any decision on the type of gas you use.

Whilst heavy gas users may be better off with natural gas the same is not necessarily true for light to moderate usage.

Homes with modest gas consumption, and especially ones with gas for cooking only, may well be better off with an LPG gas price.

You can do something:

If you are experiencing ever increasing natural gas costs, it may be time to calculate gas prices.

Find out for yourself why some homeowners are abandoning natural gas for an LPG gas price.