Energy politics get interesting as gas prices drop, electric bills rise
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The White House and GOP officials are on a PR offensive to tout gasoline prices that — depending on how you slice the data — are at their lowest since either May 2021 or last December.
Why it matters: Average prices are hovering around $3 per gallon or have already dipped below that. It adds intrigue to a huge question: Who gains politically when pump prices fall but power bills rise?
The big picture: Costs to fill up gasoline tanks vs. keeping the lights and heat on at home are moving in generally opposite directions, which makes energy prices even more of a midterm political wild card if trends hold.
- More immediately, power bills are front and center in New Jersey's close governor's election Nov. 4. They've also become important in the Virginia governor's race.
- But GasBuddy reports that "barring any major disruptions, gas prices are likely to remain slightly below year-ago levels and could stay under $3 for much of the next few months."
- "Promises made, promises kept," the White House said in an X post boasting about the gas figures.
The intrigue: Democrats are putting heavy focus on electricity prices that are pinching wallets — and arguing that the new GOP budget law will exacerbate the problem by making it harder to add renewables to the grid.
- "The GOP raised taxes on energy in their Big, Beautiful Betrayal, and Trump's ongoing attacks on clean energy projects are driving up consumers' energy bills and killing jobs," Senate Minority Leader Chuck Schumer (D-N.Y.) said in an X post.
Driving the news: Electricity costs are on a steadily upward climb that well outpaces inflation.
- One recent sign: the Energy Department's independent stats arm sees residential electricity costs averaging 4.8% more this winter than the 2024-2025 cold season.
Yes, but: Gasoline prices are typically a bigger share of household budgets than power, though the difference varies by state and region.
- A recent study by the nonprofit Electric Power Research Institute found that last year, the average U.S. household paid $1,850 for electricity and $2,930 for gasoline.
The bottom line: The White House is taking a victory lap on falling pump prices. But politically, it's a much longer race.
