Tin oxide (SnO2) nanorods were prepared by surfactant-free hydrothermal method and their methane gas sensing characteristics were studied. These SnO2 nanorods were characterized by XRD, SEM, TEM, EDS, EELS, UV–Visible, and Raman spectroscopies. The SnO2 nanorods were single crystalline possessing tetragonal rutile structure. Average diameter of the nanorods was in the range from 8 to 48 nm with an average length of 174 nm. The diameter of the nanorod was found to increase with the increase of reaction time. The E g and A 1g Raman modes showed a significant blue and red shift, respectively, and this was due to the contribution from the phonons with q ≠ 0 in the first Brillouin zone. Gas sensing measurements against methane gas showed a good sensitivity at an operating temperature of 100 °C, and the maximum gas sensitivity was observed at 175 °C. Our present experiments clearly demonstrate the sensitivity of methane up to 300 ppm at 100 °C, which is a lower operating temperature compared to the previously reported values. Hydrogen sensor was also fabricated with the same SnO2 nanorods and its performance was compared with the methane gas sensor. These rods show better sensitivity toward methane gas than hydrogen gas.