Mr Bush told the Renewable Fuels Association that the US needs to "get off its dependency on oil" as crude costs have moved towards record levels.

The US will also stop topping up the strategic oil reserve, boost domestic output and promote alternative fuels, Mr Bush said and added that oil and petrol prices are a matter of national security.

He said that the main problem facing the US is that it now gets 60 percent of its crude from foreign suppliers. As a result, the US has to step up its efforts to become energy independent, especially when consumers are bearing the brunt of oil market problems by having to pay more for their petrol, he explained.

Calling high petrol prices a hidden tax that hurts consumers and companies, Mr Bush said a main worry is that corporate and retail spending will decline as gasoline prices top US$3 a gallon.

Mr Bush said that he is asking the Federal Trade Commission and the Department of Justice to look into whether the higher price of petrol is being caused by market manipulation.

However, Mr Bush warned that any steps he has introduced are simply short-term measures that need to be backed up by a shift in mentality among US consumers and companies.

What the US now needs to do is step up its efforts to conserve energy, and invest in new, environmentally friendlier sources of fuel such as ethanol, he explained.

Voters have expected oil companies to spend more on developing alternative energy sources, especially as they are making massive profits, Mr Bush said.

BBC