Gas bills go up, Kiwis feel the pinch

Gas prices in New Zealand are rising, affecting both households and businesses. About 600,000 homes use gas, and many are seeing their energy bills increase by around 10%. The exact increase varies depending on location and provider.

For households, the cost isn't just about the gas used. Many pay a fixed daily fee for gas supply, even if they use very little. Some families are choosing to disconnect their gas service to save money. Even after disconnection, some providers continue to charge the daily fee unless the gas meter is physically removed, which can cost extra.

Commercial growers, like those producing tomatoes and capsicums, are also feeling the impact. Gas is essential for heating greenhouses and boosting plant growth. Over the past five years, some growers have seen their gas costs rise by up to 200%. Many are now on short-term contracts, making it hard to plan for the future.


The main reasons for these price hikes are declining gas production and increased demand. Key gas fields, such as Maui and Pohokura, are producing less, and new exploration projects face delays due to regulatory challenges. Moreover, low hydroelectric power generation during winter has increased reliance on gas, pushing up demand and prices.

The future of gas in New Zealand is uncertain. While liquefied natural gas (LNG) imports are considered a potential solution, they may not be viable for another 18 months and could be expensive.