Victorian household gas bills set to soar by at least $150 this winter

First it was petrol, then electricity, now Victorian families will be hit with soaring gas prices this winter.

Household gas bills are set to skyrocket by at least $150 across Victoria, with families urged to shop around to avoid massive winter price whacks.

Analysts and social services groups are warning of bill shocks ahead due to international conflict pushing up wholesale costs, which many retailers will pass on later this year.

This is expected to drive up tariffs by 10-20 per cent, at a time when Victorians crank up heaters and use about two thirds of their annual gas consumption.

Household gas bills will soar by at least $150 across Victoria.

The newest cost crunch comes ahead of electricity price hikes set for July 1 that will cost at least $60 next year, while a Commonwealth fuel tax cut — worth $30 a week for families with two cars who fill up once a week — expires in September.

Gas prices have soared largely due to the war in Ukraine and international competition for LNG and coal, as well as recent power station outages.

Experts say there has never been a better time to look at draft sealing and better insulating homes to keep gas costs down, and a leading social services group has urged concession card holders to sign up for 17.5 per cent winter discounts available from May 1 to October 31.

A further $250 ‘power saving bonus’ for concession recipients in Victoria is also available until June 30.

St Vincent de Paul Society policy and research manager, Gavin Dufty, said people should jump on the Victorian Energy Compare website to check their contracts and claim the $250 if a concession-card holder.

“If you are on a good deal now and you are comfortable and it will get you through winter, then sit. If not, then jump,” he said.

“Winter is coming … now is the time to make sure you are on the best gas deal.”

About half of Victoria’s gas retail companies hiked prices by between 5 and 16 per cent in January, with the rest expected to follow suit after July 1.

More hikes are also likely in January.

Households are urged to swap energy providers to get a better deal.

Public policy adviser at the Australian Industry Group, Tennant Reed, said wholesale prices quadrupling this year meant that some of those costs would wash through to households.

“An increase of 10 to 20 per cent this year would not be surprising,” he said.

Mr Reed said other countries such as the UK, where gas prices were causing intense pain, were now looking at sweeping energy efficiency measures and a range of solutions to reduce bills.

He said the incoming federal energy minister, expected to be Chris Bowen, had an opportunity to “reset” policy with state leaders and look at bold solutions.

“We have a honking big fire under our feet to get us to do something,” he said.

Victorian Council of Social Service chief executive Emma King said a winter gas hike “is terrible news for Victorians already struggling to afford the basics”.

“We know people have literally died in winter when they can’t afford heating,” she said.

Ms King said people should apply for concessions they’re eligible for but the onus should also be on companies and authorities to be more proactive in offering support.