NEW YORK (CNN/Money) - President Bush said Wednesday he's worried about gas prices rising to near-record highs and urged Congress to approve his plan to drill for oil in the Arctic National Wildlife Refuge in Alaska.

"I am concerned about the price of energy," said Bush. "I am concerned about what it means to the average American family when they see the price of gas going up. I'm concerned about what it means to small businesses."

Bush, who also cited the rising price of natural gas, said energy sources were being strained by China's growing need to feed its rapidly expanding economy.

"In terms of world supply, I think if you look at all the statistics, demand is outracing supply and supplies are getting tight, " said Bush. "And that's why you're seeing the price reflected."

"I hope Congress passes ANWR," said Bush, referring to his proposed budget for fiscal year 2006, which includes plans to explore the reserve, which some experts say holds billions of barrels of oil. "There's a way to get some additional reserves here at home on the books."

Bush's comments, delivered at a White House news conference Wednesday, followed an announcement by the American Automobile Association that the average price for unleaded gasoline has reached $2.053 a gallon, near the record of $2.054 a gallon set last May.

Bush stressed the need for conservation, and said nations around the world need to branch into alternate sources of energy, such as emission-free coal-burning plants.

"One thing is certain: We've got to use our technology to, over time, evolve away from reliance upon oil and gas, and at the same time use our technologies to make sure we can use our plentiful resources, like coal, in an environmentally friendly way," Bush said.

America would benefit from a modernization of its electricity grid, he said. Bush has proposed $96 million to improve the grid to help prevent blackouts.