Conflict sparks energy worries for households

Like every other city resident, Robert received a letter at the end of March from Houston Public Works notifying him that starting April 1, the water and wastewater rates would increase by 7.87 percent.

The hike was necessary to address rising costs of operating, repairing and maintaining the system, paying debt, and expanding infrastructure as the city grows, the notice explained.

The monthly bill for a typical single-family home using 4,000 gallons (15,200 liters) of water has risen from $75 in 2021 to $125 this year, an increase of 66 percent, according to an analysis of city data by a local news outlet.

Robert, a handyman who was unhappy to see the notice, said he was also worried the electricity rate would increase because oil prices had reached around $110 a barrel due to the conflict between the United States and Iran.

Figures show that between 2020 and 2025, Houston's electricity rates increased by 30 to 40 percent. This reflects the broader trend nationwide — the US electricity prices jumped about 38 percent in the same period.

The increased rates result from rising energy prices, infrastructure improvements, extreme weather, environmental mandates and the development of energy-intensive data centers, according to industry research.

Higher rates are making energy affordability a problem for sizable households in the US. Figures from the Energy Information Administration show that households experiencing energy insecurity rose from 27 percent in 2020 to 33 percent in 2024, according to the most recent data available.

An analysis by the American Council for an Energy-Efficient Economy showed that 25 percent of households spent more than 15 percent of their income on energy bills in 2024, and they reported reducing or forgoing food or medicine to pay their energy bills.

Last year, the energy rate went up by 7.1 percent, which likely worsened the affordability problem.

Robert's worry about energy prices is warranted. This month, Houston electricity rates increased by about 4 percent compared to a year ago. Nationwide, the rate was higher by 9.5 percent in April, according to Choose Energy, an energy shopping platform.

Robert was not only worried about energy costs to cool his house, but also another wave of high inflation resulting from the Iran conflict.

The most obvious sign is the gas price. At the pump, the national average rate reached $4.12 per gallon in the first week of this month for regular unleaded fuel, an increase of 26 percent since the fighting began.

"I am getting fewer calls for my services lately," Robert said. "Some complained that my prices are too high — I haven't raised my prices for two years. People are holding tighter to their wallets."

In fact, Robert is tightening his own wallet. "I used to refill my car occasionally at convenient locations to save time. Now, I make sure to refill every time at Costco to save money," he said. "I am holding off on my plan to get a new car. I might need the money to fend off high inflation down the road."

Like 90 percent of those polled, Robert said he hopes to see the Iran war end as soon as possible, but he was not hopeful.

"President (Donald) Trump changes his tune so often that I don't know what to expect. I only know that if the Iran war drags on, high inflation might be inevitable because this war is disrupting the oil market, and we are energy-dependent for almost everything," Robert said.

High gas prices have taken a toll on people's happiness in the past.

Decline in happiness

A study by the Brookings Institution in Washington after the 2008 financial crisis found that rising gas prices negatively affect the sense of happiness for US citizens.

The study found that on average, the increase in gasoline prices during the financial crisis resulted in a decline in happiness equivalent to what would have been caused by a $530 drop in monthly income. That was much more than the average household's additional gasoline expenditure.

While vulnerable, low-income groups often struggled financially because of budget constraints, a gas price above $4 per gallon resulted in low mental well-being while the affluent saw it as a sign of a worsening trend, the study said.

Many US people are complaining about gas prices online. Yet, they seem to get little sympathy from people in other countries.

"Stop complaining about your petrol prices. You have the cheapest fuel in the world," a post on Reddit read. "And you are causing all other developed nations to pay higher prices due to your … president."

In the United Kingdom, the gas price was more than $9 per gallon. In France, the price was more than $8.