"American families and small businesses across the country are feeling the pinch from rising gas prices," Bush said in his weekly radio address. "If you're trying to meet a family budget or a payroll, even a small change at the pump can have a big impact."

Next week, Congress is to debate energy legislation and Bush will give a speech Wednesday about America's energy woes and ways to improve supply. He will speak to the US-Hispanic Chambers of Commerce Legislative Conference in Washington.

In his radio address, he said he wanted energy legislation to encourage the use of technology to improve conservation.

"We must find smarter ways to meet our energy needs, and we must encourage Americans to make better choices about energy consumption," he said.

The energy legislation, he said, must also encourage more production of energy at home, diversify the energy supply by developing alternative sources such as ethanol or bio-diesel and find better, more reliable ways to deliver energy to consumers by upgrading transmission lines and pipelines.

Bush, who worked in the oil business early in his career, said US energy consumption had increased by about 4 percent, while domestic production had dropped by 1 percent in the past three years.

"That means more of our energy is coming from abroad. To meet our energy needs and strengthen our national security, we must make America less dependent on foreign sources of energy," he said.

Bush is expected to discuss high prices when he meets this month with Saudi Crown Prince Abdullah at his Crawford, Texas, ranch on April 25.

Energy Secretary Samuel Bodman said in a speech Friday the country was pursuing ways to make electricity and transportation fuel without fossil fuels in order to reduce emissions and reduce dependence on foreign oil.

As examples, Bodman cited renewable motor fuels like ethanol, bio-diesel and clean diesel.

"Already there are eight models of clean diesel vehicles and more than 20 models of ethanol-compatible vehicles available to US consumers," Bodman said. "We also are working to develop hydrogen-powered cars, and to make greater use of renewable electricity sources such as wind and solar power."

The Republican-controlled Congress appears poised to open Alaska's Arctic National Wildlife Refuge to oil drilling.

Giving oil companies access to the refuge's 1.5-million-acre coastal plain and billions of barrels of crude oil is a key part of the Bush administration's national energy plan to help reduce US oil imports.

Despite objections from Democratic lawmakers, the House Resources Committee voted Wednesday to allow oil companies to drill there.

With gasoline demand the biggest component of oil consumption at about 40 percent, many environmentalists say the only way to reduce petroleum demand significantly is to boost vehicle fuel efficiency.