The US is experiencing a stark shift in energy prices, with residential power costs predicted to rise 4% in 2025 to 17 cents per kilowatt-hour, according to the DOE’s independent statistics arm. This increase is driven by rising demand for AI, heating needs, and an electrifying economy. Meanwhile, gasoline prices are expected to decrease due to abundant oil supplies and low global demand growth.
The diverging trends in energy costs pose a significant challenge for policymakers as they head into next year’s midterms. With power bills on the rise, consumers will likely face higher costs for electricity, while motorists may benefit from lower gas prices. This shift in energy prices sets up an interesting political experiment, with implications for politicians seeking to balance economic growth with rising consumer costs.
Source: https://www.axios.com/2025/08/13/gas-energy-power-bill-costs-prices