Trump Said He’d Cut Energy Prices in Half in 12 Months: Here’s Where They’re at Today
Written by
Lydia Kibet
Edited by
Rebekah Evans
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President Donald Trump made a bold promise that he’d slash energy prices in half within 12 months of taking office during his campaign in August 2024. “You will never have had energy so low as you will under a certain gentleman known as Donald J. Trump,” he said at a North Carolina rally.
Nearly a year into his second term, here’s what’s happening with energy costs under Trump’s administration.
Electricity Costs Are Rising
Trump recently claimed at the U.N. General Assembly in September that “energy costs are down,” but data shows costs have been rising. According to the U.S. Energy Information Administration (EIA), retail electricity prices have gone up since 2022 and will likely continue rising through 2026. On the other hand, as of the end of August 2025, residential electricity prices jumped 6.2% compared to the last 12 months, per the U.S. Bureau of Labor Statistics (BLS).
Federal Reserve data shows the average household energy cost hit $280.91 in August 2025, up from $261.57 the year before. Some regions are experiencing even sharper increases. Based on EIA data, Maine, New Jersey and the District of Columbia saw residential electricity prices spike as of August 2025. Only two states have seen a slight decline in power prices: Nevada and Rhode Island.
Multiple factors are driving electricity costs up, with the growth of artificial intelligence (AI) being a major factor. A late 2024 report from the Department of Energy’s Lawrence Berkeley National Laboratory found that data center energy usage has tripled for the past decade and could double or triple by 2028.
Data centers consumed just 4.4% of total U.S. electricity in 2023, but the Berkeley Lab projects this could jump to between 6.7% and 12% by 2028. This demand surge is one reason retail electricity prices for residential customers will likely continue to increase.
Natural gas prices have also surged 37% compared to last year. This matters because natural gas generates about 40% of U.S. electricity, equal to all coal and renewables combined.
Aging infrastructure adds another layer of expense. Many transmission and distribution facilities date back to the 1960s or earlier and require costly upgrades, particularly in states like California, where wildfire risks demand expensive safety improvements.
Gasoline Prices Show Some Relief
Unlike electricity prices that are going up, gasoline prices are actually showing some relief. According to the BLS, gas prices have fallen 6% over the last 12 months as of August 2025. The EIA reported U.S. average pump-prices for gasoline in October 2025 was approximately $3.05 per gallon.
Although gas prices have dropped slightly, they have not been cut in half as Trump promised.
Trump’s Energy Policies May Be Making Things Worse
The administration’s own policies might be undermining affordability. Trump’s tax law stripped incentives for wind, solar and renewable energy projects, per the White House’s website. According to an order from the Bureau of Ocean Energy Management (BOEM), the White House halted construction on a nearly finished Rhode Island wind farm, with Trump arguing windmills are “ruining our country,” as reported by Forbes Breaking News.
The administration has also forced aging coal plants to stay online, citing electricity shortage concerns. When the Energy Department ordered a 60-year-old Michigan J.H. Campbell coal plant to stay online, local officials warned the move would prove costly for consumers. As for where energy costs will ultimately land during Trump’s presidency, that is yet to be seen.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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