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In a letter to the Federal Trade Commission, New York's senior senator is demanding an immediate investigation into U.S. oil refineries, to see whether they are price fixing.

During a Sunday news conference at a gas station in Hell's Kitchen, Manhattan, Schumer cited a new report that refineries are scaling back stockpiles in order to inflate the price at the pump.

"The FTC needs to take a top to bottom, thorough look at this problem. They have to come up with a reason why profits are way up, why refining capacity is only at 80 percent and why we are exporting oil when the price is so high," said the senator.

Senator Kirsten Gillibrand also agreed with her colleague.

"We should be investigating the oil companies for manipulation and they should be doing analysis about whether there is a role of speculation that is driving those prices," said Gillibrand.

With gas hitting more than $4 statewide, local drivers said the prices affect their budgets.

"I think gas prices are outrageously high. I think oil companies continue to post billions and billions of dollars in profits and the average American doesn't get much of a break," said folk and jazz musician Brendan O'Hara, who pays most of his travel expenses out of pocket. "I did just buy a bike yesterday... but you really can't bring a piano on a bike. So we'll see where it gets me."

"It is hurting the economy. People aren't going as many places," said motorist Laurie Hessong.

However, some drivers from outside the country think that American gas prices are not to bad, compared with global prices.

"It is just amusing to me to hear people freak out if it goes over $4 or $5, when in Europe and Australia the price has been much higher," said one traveler.

"It is a non-renewable resource and it should probably be a lot more, if you look at the prices in Canada and Europe. It is cheap here," said another.

The price of unleaded regular gas is $4.15 a gallon in the city, while the national average is $3.79.