Washington ? President Bush said Friday that taxing enormous oil industry profits is not the way to calm Americans’ anxieties about pain at the gas pump, and that his “inclination and instincts” are that major oil companies are not intentionally overcharging drivers.

Bush’s remarks suggested the former Texas oilman is unlikely to take harsh action against oil companies despite public anger about the rising cost of fuel. Gasoline is averaging $2.92 per gallon across the country, up 69 cents from a year ago, according to AAA’s daily fuel gauge report.

With politicians concerned the issue could tilt what are expected to be close midterm elections this fall, the president and many in Congress have been rushing to offer solutions, most of which would offer little immediate relief.

Some Democrats have viewed this week’s announcement by major oil companies of huge first-quarter profits as a chance to renew their push for a windfall profits tax. Although a few Republicans, including Sen. Arlen Specter, of Pennsylvania, have said the idea ought to be examined, Bush and most GOP lawmakers strongly oppose it.

“The temptation in Washington is to tax everything,” the president said in a wide-ranging news conference.

Instead, Bush called on Congress to ease regulations that make it difficult to expand the nation’s refining capacity. He also urged oil companies to plow their profits into finding and producing more energy, such as by building natural gas pipelines or pursuing renewable energy sources – all ventures that could further boost the companies’ bottom lines.

President Bush talks to reporters on the economy in the Rose Garden of the White House in Washington Friday, April 28, 2006. (AP Photo/Gerald Herbert)

Three days ago, the president announced a series of steps, including calling on his administration to investigate possible price gouging. But he admitted Friday that he thinks it’s probably not happening.

“I have no evidence that there’s any rip-off taking place,” Bush said. “It’s the role of the Federal Trade Commission to assure me that my inclination and instincts is right.”

The president has supported the rolling back of some oil industry tax breaks that were enacted with his support just eight months ago. That tax break recision is part of a broader gas price-relief plan offered by the Senate GOP leadership, but House Republicans signaled this week they won’t go along.

Bush called reporters to the Rose Garden to trumpet recent positive economic reports. But, aware that high gas prices are one of the reasons that good news hasn’t sunk in with much of the public, he acknowledged fuel costs threaten to derail economic progress – and used a driving metaphor to make the point that tax cuts are the key to continued strength.

“With gas prices on the minds of Americans, we need to keep our foot on the pedal of this strong economy,” the president said.