Trump’s War In Iran Is About To Show Up In Your Electric Bill

Key Points:

• Hawaiʻi, heavily reliant on foreign oil for nearly 75% of its electricity, faces a projected 20% to 30% increase in electric bills due to soaring global oil prices amid the U.S.-Israel conflict with Iran.
• Hawaiian Electric Co. anticipates rate hikes starting this month on Oʻahu and later on neighboring islands, with a typical 60-day lag between fuel oil purchase and billing impact; the duration of higher rates depends on the conflict's length.
• Kauaʻi, with a larger share of renewable energy, expects a smaller rate increase of about 13%, highlighting the buffering effect of fixed-price renewable sources against global oil price volatility.
• Par Hawaii, the state's sole oil refinery operator, notes stable near-term fuel supply but predicts sustained high prices, especially for jet fuel, which has doubled recently due to tightened global supplies and export controls from Asia.
• To prevent jet fuel shortages and maintain inter-island travel, Par Hawaii benefited from a temporary Jones Act waiver issued by President Trump, easing fuel imports from the U.S. mainland; however, prolonged high prices are expected for several months regardless of the conflict's outcome.