President Barrack Obama revealed Saturday that he finds no immediate solution to reduce the high cost of gasoline and called for the end to the $4 billion taxpayer subsidies to oil and gas companies.

Oil prices are now at $4 per gallon and showed no signs of decreasing. A recent poll by the New York Times-CBS News revealed that 70 percent of Americans believe that the US is headed for the wrong track and analysts attribute oil prices as a major contributor.

In his weekly radio and Internet address, the President outlined his views on the country’s energy situation saying clean energy is ultimately a major step to rid its citizens from the increasing gas prices. He said that politicians have long bragged about having a solution to reducing oil prices to $2 per gallon but in reality there is really no immediate solution to the rising oil prices.

Although the US economy has made major strides towards improvement, the increasing price of oil has forced Americans to pay more out of what they are making, raising concerns that it would hurt the fragile economic recovery. Obama called for the elimination of the $4 billion in annual taxpayer subsidies to oil and gas companies. On Thursday, the President unveiled a working group that would investigate possible fraud in the energy market.

The President lashed at the Republicans for attempting to cut 70 percent in government expenditures that would bring about the development of clean energy projects. But Senate Republican leader Mitch McConnell responded by saying that Obama had been implementing what he called a “war on American energy” by canceling drilling leases, imposing moratoriums on drilling off the Gulf Coast and increasing permit fees.

The comments made by Obama and McConnell came three days after the anniversary of the BP Oil Spill off the coast of Louisiana bringing about economic and environmental harm to the US Gulf Coast.

The national average for oil in the United States has increased to $3.84 per gallon, but in some states it has reached $4, the highest in three years. Increasing oil prices would not only be felt by driving Americans but also in other industries. Airline companies say that an increase in gas prices would result to losses of $175 million a year. Loss profits means higher ticket costs and additional fees for travelers.

The increasing oil prices could very well have an impact on Obama’s re-election bid in 2012. Despite his statements that the increase in oil prices is tied with the political situation in the Middle East as well as the increasing demand from the Chinese government and elsewhere, Americans traditionally blame the sitting administration for the increasing gas price.

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