Mr Bush announced several measures to help slow the rapid rise in gasoline (petrol) prices, including suspension of deposits into US strategic oil reserves, which would add to the market supply.
"One immediate way we can signal to people we're serious about increasing supply is to stop making purchases or deposits to the strategic supply for a short time," Mr Bush said in a speech.
"The strategic reserve is large enough to guard against any major supply disruption over the next few months. By deferring deposits until the fall, we'll leave a little more oil on the market. Every little bit helps," the president said.
Attack on oil prices
In remarks to the Renewable Fuels Association, one of the chief backers of ethanol and other alternatives to petroleum-based fuels, Mr Bush unveiled a multi-pronged attack on escalating oil prices, including increased conservation, expanding domestic production and developing alternative sources of energy.
He also said the Federal Trade Commission (FTC) was investigating whether "the price of gasoline has been unfairly manipulated in any way."
In addition, the president called on oil companies to give up billions of dollars' worth of tax breaks.
Mr Bush acknowledged that the spike in gasoline prices has been felt across US society, hurting consumers and putting a damper on business.
"Gasoline price increases are like a hidden tax on the working people. They're like a tax on our farmers. They're like a tax on small businesses," Mr Bush said.
"Energy experts predict gas prices are going to remain high throughout the summer. And that's going to be a continued strain on the American people."
Mr Bush added that, with oil prices at record levels, energy companies do not need all of the tax breaks they now get, and proposed ending two billion dollars of tax write-offs over the next decade.
The US president also suggested that consumers bear part of the blame for soaring fuel costs, saying that "the prices people are paying at the gas pump are a reflection of our addiction to oil."
"Our addiction to oil is a matter of national security concern," Mr Bush said, adding that about 60 percent of the United States' oil comes from foreign sources, compared with just 25 percent 20 years ago.
Democrats sceptical
Senate Democratic leader Harry Reid agreed that drastic action is needed, although he blamed ruling Republicans as greatly responsible for the soaring gas prices, citing their high tolerance for legislation bolstering the bottom line of big business interests.
Another top Democratic senator, Debbie Stabenow, noted that an FTC study not unlike the one the president ordered Tuesday on the cause of rising fuel prices is already under way. The findings, due to be released in May, she said, are not in doubt.
Another top Democrat, US Senator Chuck Schumer, was equally skeptical of the president's initiatives.
"There were five words missing from the president's speech today: 'Get tough on Big Oil.' The president refuses to do that," said Senator Schumer.