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What Factors Affect the Price of a Gas Bill?

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  • Written By: G. Wiesen
  • Edited By: Heather Bailey
  • Last Modified Date: 15 November 2016
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There are a number of factors that can have an impact on the total price of a gas bill, though a few factors are quite common. The amount of gas used during the period of time reflected on the bill will usually have a direct impact on the total price. This is usually independent of how the gas is provided and is based on the habits and gas usage of a particular person or business. Other major factors related to the price of a gas bill are the rates a gas supplier charges, as well as various taxes and extra service fees.

A gas bill is an order of billing a customer receives from a company that provides him or her with natural gas supplied to a building for purposes of heating and similar uses. This usually comes to a customer once each month in the form of a paper document, though it can also be provided digitally. The billing order should typically list a variety of charges plainly, as well as provide explanation for those charges. A gas bill is usually fully itemized and there may be a number of individual fees that make up the total bill.

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One of the largest factors in the total price of a gas bill is the amount of gas a customer uses. This is often measured by a meter placed at the customer’s location, which is typically read each month to indicate usage by that customer. The gas bill sent to a customer should provide information on gas usage, often in the form of a number showing the quantity used, measured by thousands of cubic feet (MCF). This amount will then usually have a direct impact upon the price of the gas bill.

The rate that a gas supplier charges for natural gas will also tie into how the customer’s gas usage impacts his or her gas bill. Many suppliers charge per thousand cubic feet of gas, and so this base amount is multiplied by the quantity used to generate the total charge. This may then have sales tax applied to it as well, depending on the location and business providing the gas, as well as any other local, regional, or federal taxes on such services. Some suppliers may also charge a basic monthly fee, which is the same each month and separate from the amount charged for the gas itself.

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