Gasoline prices are shown at a gas station in Del Mar, California
Gasoline prices are shown at a service station in Del Mar, Calif., March 9, 2011. Reuters

The American Petroleum Institute launched a new ad campaign over the weekend to lobby against a U.S. Senate vote to eliminate oil tax breaks.

The Senate is scheduled to vote Monday on a bill sponsored by Sen. Robert Menendez (D-N.J.) to kill some of the Oil Lobby's favorite benefits . They include drilling costs that stem from survey work, ground clearing, salaries, maintenance and repairs in exploration and drilling projects.

Commercials will air through Tuesday on the radio and print ads will appear in Missouri, Massachusetts, West Virginia, Virginia, North Carolina, Maine and Nevada.

The API, the country's largest trade group backed by oil companies, on Monday called removing tax breaks for oil and gas companies a Trojan horse that would reduce the country's energy security and cost thousands of jobs.

Raising taxes will not lower energy prices for American families and businesses-in fact, the Congressional Research Service says this plan could cause gasoline prices to go higher, said API President and CEO Jack Gerard.

Big Oil vs. Obama

Our new campaign in key states will explain that more domestic production is critical to putting downward pressure on gasoline prices [that] supply matters, he added. In the past, Gerard had been an aide to Republicans including retired Sen James McClure (R-Ida.).

The trade group has been vocal in its opposition to President Barack Obama's energy policy, which advocates an all of the above approach to meeting the country's energy needs.

The trade group suggests the president should open up more federal lands to drilling to help bring gasoline and energy prices down.

It cited a March 20 survey, created by the API, that found 76 percent of polled responders believe increasing taxes on big oil will increase gasoline prices, not lower them.

It's time to work together on a national energy strategy that focuses on developing all American energy resources, said Gerard. A true 'all-of-the-above' strategy will create jobs, provide much needed revenue for our government and secure our nation's energy future.

The country's average retail price for gasoline was $3.89 per gallon, a penny higher than last week and 32 cents more than a year ago, the American Automotive Association said. The price is 22 cents below the record.

Gasoline traded Monday on the New York Mercantile Exchange at $3.39 per gallon.

Crude oil rose a penny $106.88 per barrel on the Nymex.