Pump pain heats up pressure for new energy law

By Chris Baltimore

WASHINGTON (Reuters) - Pressure for the U.S. Congress to pass new legislation to increase vehicle fuel efficiency and hike renewable fuel use is mounting as a surge in oil prices sends consumer fuel costs toward fresh records.

Democrats have been pushing for an energy policy rewrite since they took majority control of Congress this year.

But progress has been stymied by auto industry states on fuel efficiency standards and by oil producing states on energy industry taxes.

Experts say members of Congress may now get an earful as they return home for the Thanksgiving holiday next week to voters facing forecasts that average U.S. gasoline prices will hit new records above $3.20 a gallon.

"The pressure that is mounting on Congress is tremendous," said Tim Greeff, deputy legislative director for the League of Conservation Voters. "With oil prices where they are, they are going to hear about it from constituents."

Concerns about supplies ahead of the Northern Hemisphere winter helped push oil prices up more than 40 percent since mid-August to near $100 a barrel.

The run-up means consumers in the world's biggest economy -- already on shaky footing from the growing subprime credit crisis -- will likely face another rise in fuel costs, with home heating oil prices hitting a record $3.21 a gallon on Thursday.

Democratic congressional leaders, who want to pass the legislation by the end of the year, say the issue is taking on greater urgency as the economic impact of U.S. oil dependence adds to environmental concerns.