Lawmakers addressing skyrocketing gasoline prices

WASHINGTON -- Surging gasoline prices will be addressed by the Senate next month when debate begins on a package of energy bills, Senate Majority Leader Harry Reid of Nevada said Wednesday.

But the problem is not local gas stations, he said.

"You go to a service station in Las Vegas, and the price of gasoline is $3.28 a gallon. That man that has that service station doesn't make any money," Reid said.

"He makes pennies -- pennies, less than a nickel a gallon. The oil companies and refineries make it all," Reid said.

The energy bill the Senate will debate in three weeks would reduce U.S. reliance on foreign oil by increasing renewable fuels such as ethanol, from 8.5 billion gallons in 2008 to 36 billion gallons in 2022.

The Senate also plans to consider increasing the fuel efficiency of automobiles to 36 miles per gallon.

Talking to reporters, Reid did not answer directly whether the bill would provide immediate relief for consumers.

"It will have an effect on prices, long term for sure," Reid said. "Short term, we hope we leave the message that we've had enough of this."

The House voted 284-141 on Wednesday to give the Federal Trade Commission authority to investigate and punish companies for gouging gas prices.

Reps. Shelley Berkley, D-Nev., and Dean Heller, R-Nev., voted to expand FTC authority. Rep. Jon Porter, R-Nev., voted against it.