Victorian households and small businesses are facing a significant increase in their gas bills from July 1, 2026, with major retailers EnergyAustralia and Origin Energy announcing average tariff hikes. For many, this will translate into higher household expenses as winter usage peaks.
EnergyAustralia has confirmed a weighted average tariff increase of 5.1% for its deemed and standing offer domestic and small business customers in Victoria. Simultaneously, Origin Energy is implementing an average natural gas tariff increase of 5.9% for residential customers and 6.9% for small business customers on their standing offers.
These adjustments, published in the Victoria Government Gazette on May 31, 2026, are attributed to changes in wholesale gas, network, and retail costs. The increases come at a time when Victorian households already grapple with the highest average gas bills among competitive states in eastern Australia, with typical annual costs reaching an estimated AUD$1,480 in 2026, a 5.0% rise compared to 2025.
ESC Urges Immediate Action on Gas Offers
In response to these rising costs and ahead of the winter peak, the Essential Services Commission (ESC) issued a public call on June 9, 2026, urging Victorians to actively check their gas plans. Recent data from the ESC indicates that a substantial 45% of Victorian gas customers could save more than 15% on their bills simply by switching to their retailer’s best available offer.
“Retailers have to tell customers when they can offer them a better deal - and for many households, taking up that offer can make a real difference.” — Gerard Brody, Essential Services Commission Chairperson and Commissioner
While electricity customers are more likely to be on their retailer’s best offer, the ESC highlighted a significant gap for gas users, with many missing out on potential savings. Under Victorian regulations, gas retailers are mandated to inform customers at least once every four months if they can provide a better deal. This information is typically displayed on bills.
Understanding the Price Drivers
The rising costs are a complex interplay of various factors:
- Wholesale Gas Prices: Fluctuations in the wholesale gas market directly impact the prices retailers pay, which are then passed on to consumers.
- Network Costs: These cover the costs of maintaining and upgrading the gas pipeline infrastructure. Victoria’s gas market is characterised by a complex multi-distributor landscape, contributing to varying cost structures across the state.
- Retail Costs: These include operational expenses for energy providers, customer service, and marketing.
The increases specifically affect customers on standing offers, which are typically less competitive than market offers. The ESC’s analysis shows that the spread between the most expensive standing offer and the cheapest competitive market offer in Victoria is approximately AUD$380 per year, representing the largest such gap in the country.
What Victorian Consumers Can Do Now
With winter increasing reliance on gas heating, hot water, and cooking, proactive steps are crucial to mitigate the impact of these price hikes:
- Review Your Bill: Check your latest gas bill for information on your current plan and any notifications from your retailer about better offers. Retailers are required to provide this.
- Compare Offers: Utilise the Victorian Government’s Victorian Energy Compare website to compare gas plans from various retailers. This free, independent service can help identify significantly cheaper market offers that align with your household’s usage patterns. This is similar to how consumers can find Best Electricity Plans in Australia 2026: A Comprehensive Guide for Households to Cut Costs.
- Contact Your Retailer: If you find a better offer, contact your current retailer to see if they can match or beat it. Don’t hesitate to switch providers if they cannot. For guidance on this process, consider The Ultimate Guide to Switching Electricity Providers in Australia 2026: Save on Your Home Energy Bills, which offers transferable advice.
- Consider Electrification: For long-term savings and reduced exposure to gas price volatility, explore options for transitioning away from gas appliances. Resources like Ditch Gas & Save $1,000+ Annually: Your 2026 Australian Home Electrification Guide provide comprehensive information on costs, benefits, and available rebates.
- Energy Efficiency: Improve your home’s energy efficiency to reduce overall gas consumption. This includes checking insulation, sealing draughts, and ensuring appliances are well-maintained. Understanding How Much Do Your Winter Appliances Really Cost to Run in Australia 2026? A State-by-State Guide can help identify areas for savings.
For those experiencing financial hardship, the ESC advises contacting your retailer as early as possible to discuss available support programs. The impending July 1 increases underscore the importance of active consumer engagement in Victoria’s gas market to manage household budgets effectively.
Victorian Gas Standing Offer Increases (July 1, 2026)
| Retailer | Customer Type | Average Increase |
|---|---|---|
| EnergyAustralia | Residential & SMB | 5.1% |
| Origin Energy | Residential | 5.9% |
| Origin Energy | Small Business | 6.9% |
Note: These figures represent average increases for standing offer customers and may vary based on specific tariffs and usage.