Tyson Slocum, director of Public Citizen's Energy Program, said it would be "fiscally irresponsible" for the government to give tax breaks to what is already a profitable industry. He said the oil companies could build or expand refineries but it is in their financial interest not to because it keeps the fuel supply as tight as possible.

"It is bad energy policy and it is bad tax policy," Slocum said. "It gives them a tax incentive for something they would already do."

Slocum said he would much rather see incentives given to American families who would like to buy a fuel-efficient car or hybrid but cannot afford it, to mass transit programs or to incentives to help with energy-efficient home renovations.

Senate and House Democratic leaders say they want broad energy legislation passed before the Fourth of July congressional recess.

The Senate bill urges automakers to boost their fuel economy to a fleet average of 35 miles per gallon by 2020, about a 40 percent increase over what new cars and the less fuel efficient SUVs and pickup trucks are required to attain today. The auto standard of 27.5 mpg was last increased 18 years ago. SUVS and small trucks must achieve a fleet average of 22.2 mpg.

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Contributing: Associated Press

E-mail: suzanne@desnews.com