Up to $1,000 per gallon of natural gas could be sold at the pump in Ohio and Indiana, with the state and local governments taking the largest hit, according to gas futures market data.
John Kasich, who has pledged to veto a bill that would require his state to sell natural gas for an average of $1.25 per gallon during the shutdown, said on Monday he’s considering a bill to limit the price.
“We will do everything possible to keep Ohio’s gas prices low during this time of uncertainty,” Kasich said in a statement.
The gas futures markets are not a regulated entity and are largely unregulated, meaning they may be subject to manipulation by energy companies.
The federal government, however, has issued regulations requiring that gas companies report gas prices to the Federal Energy Regulatory Commission (FERC) and to the Department of Energy.
The EPA has also issued regulations that require gas companies to report natural gas prices and to disclose their costs to the public.
But Ohio Gov.
Ted Strickland said he will veto the bill if it passes.
“I will veto any bill that requires Ohioans to pay more for their gas,” Stricklaf said in his statement.
“That is why I am focused on supporting a bill with bipartisan support that provides an affordable way for Ohioans and businesses to access natural gas during this extremely difficult time.”
The Senate has yet to vote on a bill, but Democrats in the chamber have promised to do so.
The FERC is required to issue regulations that govern gas companies and gas markets.
They are issued after a three-day public comment period.