Natural Gas Prices in Ireland 2024: Are They Coming Down?

By Cormac Breen

Content Manager

In 2024, natural gas in Ireland costs €0.1638 per kWh and is the second most expensive in the EU after Sweden. The average annual natural gas bill in Ireland works out at €1,257.75 on a standard rate. Gas prices in Ireland have almost tripled since 2020 due largely to geopolitical events such as the Covid-19 Pandemic and in particular Russia's invasion of Ukraine in 2022 which caused a huge spike in the cost of gas across Europe.

What Is the Price of Natural Gas in Ireland?

In 2024, natural gas in Ireland costs €0.1638 per kWh, making Ireland the second most expensive country in the EU for gas after only Sweden.

Ireland has seen a huge increase in the price of natural gas over the last 4 years, with the price rising from €0.06 per kWh in 2020 to almost triple that price in 2024. 

This big increase in the cost of energy has put huge pressure on homeowners dealing with the cost of living in Ireland.

Below, you'll find a graph outlining the price evolution of natural gas in Ireland over the last 5 years.

Last Updated: August 2024
Source: Eurostat

Are Irish Natural Gas Prices More Expensive than in the EU?

In 2024, Ireland has the second most expensive gas prices after only Sweden where gas prices are €0.2070 per kWh.

Much like Ireland, countries across the EU have seen a huge increase in the price of gas since 2020 brought on by global supply chain issues and geopolitical events such as Russia's invasion of Ukraine.

Below, you'll find a graph outlining the cost of gas across the 27 EU member states in 2024.

Last Updated: August 2024
Source: Eurostat

Why Is Natural Gas More Expensive in Ireland?

Irish households continue to pay high prices for gas, and there are several factors that influence this, including:

1. The wholesale cost of gas
2. Taxes and levies
3. Supply and transportation

Wholesale Price of Natural Gas

Despite increases in the production of renewable energy, largely down to the expansion and investment in wind energy, Ireland is still dependent on natural gas both for heating, and as part of our fuel mix to power electricity generators for the national grid.

While Ireland has its own source of natural gas in the form of the Corrib Gas Field off the coast of Co.Mayo, this only accounts for about 58% of our natural gas needs, with the remaining 42% being imported from the UK. 

This dependency on the UK may increase in the future as the Corrib Field dwindles.

Given the huge spike in the price of wholesale gas in Europe in 2022, Irish energy suppliers raised their prices significantly, passing on the cost to consumers.

Taxes and Levies

Domestic gas customers are subject to various taxes and levies which raise the cost of gas bills for Irish consumers. 

Given that natural gas is a fossil fuel which emits carbon, as part of the government's aim to be carbon-neutral by 2050, it is now subject to taxes and levies to encourage people to move to more renewable sources of energy.

The main taxes and levies you will see on Irish energy bills are:

1. Carbon tax
2. PSO levy
3. VAT

To help with skyrocketing energy prices in 2022, the Irish government reduced the rate of VAT from 13.5% to 9% along with a removal of the PSO levy.

Despite this, the government will reintroduce the PSO levy as part of Budget 2025 along with an increase in the carbon tax. The rate of VAT may also be raised back to 13.5% meaning more expensive gas bills for Irish homes.

Supply and Transportation

As an island nation, there are extra costs involved in the transportation of natural gas, which in turn increases the price for consumers.

Our gas is imported from the UK via three pipelines from Moffat in Scotland, and there are transmission system costs via entry and exit charges from Moffat.

The final price paid by the consumer also includes on-land transmission and distribution costs of about 40% plus a margin for the supplier.

The Celtic Interconnector, which will connect Ireland's power grid to the European energy market, could result in a drop in the price of gas as Ireland becomes less reliant on gas imports to fuel power generators.

When Will I See Lower Gas Prices on My Bills? Although wholesale gas prices have been declining, because of the way suppliers purchase energy, we're unlikely to see this decline on our home energy bills for a while. It takes a little while for the retail gas prices to come down, since suppliers still need to be compensated for buying high.

Which Provider Has the Best Price for Natural Gas in Ireland?

SSE Airtricty have the cheapest gas only price at an estimated €1,180.20 per year on a standard meter.

There are 6 Irish energy providers who offer gas price plans and their estimated annual bills can be compared in the table below:

💸 Cheapest Gas Offer per Supplier

Supplier	Best Offer	Estimated Annual Bill
Contact Details	20% Discount	€1,180.20
Contact Details	20% Discount	€1,223.33
Contact Details	No Discount	€1,226.34
Average Annual Gas Bill in Ireland, €1,245.66
Contact Details	20% Discount	€1,307.48
Contact Details	10% off Gas	€1,377.77
Contact Details	No Discount	€1,546.23
Call to Switch Energy Supplier Today!   01 913 1771 Click to Get a Free Callback!  Free Callback

*Figures are for illustrative purposes only. All discounts and cashback have been applied to price. Calculations based on average consumption figures. Average annual bill calculated using a weighted average according to the market share of each supplier. Last updated, October 2024

What Can I Do To Lower My Natural Gas Bills?

Given that gas prices remain high in Ireland and with no significant decrease likely to happen this year, there are some steps you can take to try and lower your gas bills.

• 🔥 How To Lower Your Gas Bills
• Compare gas providers and their prices to see if you can switch to a better deal.
• Invest in a non-gas fuelled means of heating your home, such as a heat pump.
• Improve the insulation of your home to lower your consumption of gas.
• Invest in solar panels to heat your water instead of gas.
• Avail of SEAI grants to retrofit your windows and doors to lower your gas heating demands.