Rising Oil Prices Boost Hawaiian Electric Bills for Thousands

Higher oil prices caused by the Iran war have pushed oil to around $90 a barrel, leading to a sharp rise in electricity costs for Hawaiian Electric Company (HECO) customers. Average residential bills on Oʻahu increased by $60 in June 2025 compared with a year earlier, with some islands seeing rises of up to $100 a month – a 27% to 55% jump. HECO, which serves about 474,000 customers across Hawaii, relies heavily on oil‑fired generators; fuel costs now represent roughly half of each bill. The surge has prompted angry reactions from residents and prompted HECO to stress its efforts to add renewable energy and curb costs.

The situation underscores Hawaii’s unique dependence on imported oil, unlike mainland utilities that can draw on natural gas, nuclear or coal supplies. As oil prices remain elevated, the financial burden on the state’s already high cost‑of‑living environment is expected to persist.