Chunky Herb-Tomato Sauce

1 tablespoon olive oil
1 cup chopped onion
4 cloves garlic -- minced
1 1/2 teaspoons sugar
3/4 teaspoon dried basil
1/2 teaspoon dried oregano
1/2 teaspoon pepper
1/8 teaspoon salt
35 ounces plum tomatoes -- (1 can) undrained

Heat the oil in a large saucepan over medium heat until hot. Add onion and garlic; saute 3 minutes. Add remaining ingredients; bring to a boil. Cover, reduce heat, and simmer 15 minutes. Yield: 5 cups