"This administration ... has done nothing to reduce the gas prices," Kerry told a rally at the University of California, San Diego. Californians pay more for gas than any other Americans.

The U.S. Energy Information Agency on Monday announced the average nationwide price of regular unleaded gasoline set a new high of $1.758 per gallon. The agency predicted prices would move even higher in April and May.

Kerry's motorcade stopped at a Shell station on the way to the university campus where posted prices were $2.15 for a gallon of regular unleaded and $2.37 for premium.

He proposed to drive down fuel costs by suspending replenishment of the Strategic Petroleum Reserve and by urging oil-producing countries to increase production.

"We need an energy policy that's real and honest for this country," Kerry said. "We should be putting pressure on OPEC to raise the supply and not allow those countries to undermine the economies of the world."

OPEC MINISTERS MEET WEDNESDAY

Ministers from the Organization of Petroleum Exporting Countries meet yesterday in Vienna to decide whether to proceed with a planned output reduction of 1 million barrels a day in April. OPEC's biggest producer Saudi Arabia said this week it would support further reduction in output.

Shortly before Kerry spoke, the White House said it was having talks with OPEC members about boosting output.

"We continue to engage in ongoing discussions with major producers around the world about the importance of letting the market determine the prices," White House spokesman Scott McClellan said.

Republicans as well as Democrats have urged the Bush administration to stop filling the Strategic Petroleum Reserve - America's emergency crude oil stockpile - to keep more oil in the market. The White House has refused, saying the scheduled crude oil deliveries to the stockpile have a "negligible" impact on market prices.

Energy Secretary Spencer Abraham has said filling the oil reserve to its maximum 700 million barrels was "a critical national security objective." The reserve currently contains about 645 million barrels.

Kerry told thousands of supporters at an outdoor rally that he would "momentarily" stop filling the SPR until gas prices returned to normal levels.

Other elements of his proposal include working with states to develop "rational" fuel policies that ensure local air quality was protected while reducing market problems resulting from the number of boutique fuels used around the country.

Kerry would also offer tax incentives to encourage Americans to use energy more cleanly and efficiently, fund the development of alternative energy sources like wind and solar and develop domestic oil and gas supplies. He opposes the Bush administration's plan to drill in the Arctic national Wildlife Refuge.