Accusing Congress of "pandering to the general public," Rep. Don Young, R-Alaska, Tuesday defended oil companies and proposed a $1-per-gallon gas tax to bring down demand.

Young told members of the House Transportation and Infrastructure Highways Subcommittee that the tax would cause Americans to adjust their behavior, but he also suggested exempting diesel fuel from the increase to protect the delivery sector.

"I worry about the truckers," Young said, "but I am not worried about the general public when it comes down to how they misuse the fossil fuels that are left."

He attributed the rising cost of diesel fuel to reserve shortage, and several Republican members of the subcommittee called for domestic drilling to reduce U.S. dependence on foreign oil.

Noting that he had recommended exploring U.S. resources two decades ago, Rep. Howard Coble, R-N.C., said drilling could now be done with minimal damage to the environment.

Democrats, however, pointed to speculation as the reason for high gas prices. Highways Subcommittee Chairman Peter DeFazio, D-Ore., favored tighter oversight of commodities trading.

Siding with DeFazio, Tyson Slocum, director of Public Citizen's Energy Program, testified that Congress should re-regulate energy trading exchanges, repeal tax breaks for oil companies and strengthen antitrust laws.

But Deutsche Bank Integrated Oil Analyst Ryan Todd countered that speculation doesn't create trends; it only exaggerates them.

He blamed diesel prices on crude oil, the price of which has soared in the last year.

DeFazio refused to let oil companies off the hook, asking, "When are they going to start using some of the fabulous profits for diesel refineries?"

In response, John Felmy, chief economist for the American Petroleum Institute, said oil companies are responsible to their shareholders first. He told the subcommittee that Congress could help by increasing supply or reducing demand, but also acknowledged, "There's no magic wand" to fix the problem.