SA household gas bills to drop by $144

South Australians are set to pay less for gas, with annual household bills to drop by $144 and business bills by $750.

Australian Gas Networks (AGN) has cut its distribution charges, which make up more than half of the average domestic gas bill in SA, the state government says.

The 12.4 per cent decrease will kick in from July 1 and the government has asked energy companies to pass on the savings in full to customers.