Gas prices in the area surpassed the $3-a-gallon mark last week, and as a response, Sen. Charles Schumer said he is pushing for options to offer consumers relief at the pump.

Schumer announced in a news conference Wednesday that he would like to see an increase in the IRS mileage reimbursement rate, an expanded swap of the Strategic Petroleum Reserves and a Federal Trade Commission investigation into the oil industry, following what he described as "price gouging."

According to an analysis released by Schumer, on Sept. 6, the average price of one gallon of regular unleaded gasoline reached $3.38, compared with $2.01 at this time last year. That leads to an added yearly cost for the average two-car family in Cayuga County of $2,507, the report said.

Hurricane Katrina disrupted 95 percent of oil production in the Gulf Coast region, triggering higher gas prices.

Aside from the expected increases after the hurricane, because of the sharp increases and large disparities in gas prices, Schumer said he believes a price gouging investigation is merited.

"For the pricing to go up as sharply as it has ... and to have such disparities, we need an investigation, because it's gouging," he said.

"Supply and demand can't explain it."

While people tend to blame local gas stations, Schumer said the gouging is probably coming from "somewhere down the line, with the big oil companies or with big pipeline owners."

As a response to increases in gas prices, Schumer said he would like the IRS mileage reimbursement rate to temporarily increase from 40 cents a mile to 60 cents a mile. The IRS sets the mileage rate, which determines how much of an individual's travel costs can be deductible. Many private businesses model their reimbursement rate after the IRS formula, as well.

The increase would last from this September to Dec. 31, 2006.

Schumer also encouraged the Bush administration to bring about a second round of sales from the Strategic Petroleum Reserve. Bush released about 30 million barrels of crude oil from the reserve this week.

"That is an excellent first step that should temper the increase in gas prices," he said.

But Schumer said if it is known that the reserve will be used repeatedly, "the markets will put the price of gas much lower."

Lastly, Schumer said he would encourage the administration to add $900 million to the Low Income Heating Energy Assistance Program, to help offset the increase in energy prices for seniors and low-income families.

Staff writer Anne Gleason can be reached at 253-5311 ext. 248 or at anne.gleason@lee.net.