Bush moves to ease gas prices: Stops filling reserve; urges clean air repeal, end to oil tax breaks

WASHINGTON -- Under election-year pressure to reduce surginggasoline prices, President Bush on Tuesday halted filling of thenation's emergency oil reserve, urged the waiver of clean air rulesto ease local gas shortages and called for the repeal of $2 billionin tax breaks for profit-heavy oil companies.

Still, experts said Bush's actions wouldn't have much impact onprices at the pump. The president warned that motorists would have todig deep into their pockets all summer long.

Bush urged lawmakers to expand tax breaks for the purchase of fuel-efficient hybrid automobiles, a politically popular measure that'salso supported by environmentalists. He also directed theEnvironmental Protection Agency to use its authority to temporarilywaive air quality laws in states if that would relieve a localgasoline supply shortage.

The White House was unable to say how much Bush's actions couldaffect the price of gas.

Bush said, "Every little bit helps."

'What happened to Iraq oil?'

Wholesale gasoline futures prices for June delivery dropped 8cents a gallon to $2.10 on the New York Mercantile Exchange rightafter Bush's remarks. May gasoline futures settled at $2.1291 agallon, a decline of 4.48 cents.

Democrats, eager to blame Republicans for high gas costs ahead ofthe November congressional elections, said Bush has had five years tofind a way to lower prices and has favored big oil companies overconsumers.

"It's crystal clear that the current spike in gas prices is atleast partly due to an act of greed," said Sen. Bob Menendez, D-N.J., who proposed a 60-day suspension of the federal gas tax. "Greedthat has been enabled, abetted -- even encouraged, I would say -- bythis administration."

The country's three largest oil and gas companies were expected toreport combined first-quarter profits later in the week in excess of$16 billion, a 19 percent surge from last year. Bush, a formeroilman, asked his administration to investigate possible pricegouging and said Congress should revoke about $2 billion in taxbreaks that Congress approved and he signed into law to encourageexploration.

"Cash flows are up," Bush said. "Taxpayers don't need to be payingfor certain of these expenses on behalf of the energy companies."

Menendez spoke at a press conference where Democrats sought toturn gas prices -- like Hurricane Katrina and the Iraq war -- into anissue to undermine Bush's standing with voters. "What happened toIraq oil, Mr. President? You said Iraqi oil would pay for the war.Ain't seen no money. Ain't seen no oil," said Sen. Barbara Mikulskiof Maryland.