Place peppers and onions in a large disposable foil pan. Combine oil, butter, TABASCO® Sauce, 1/2 teaspoon of the salt, and pepper and pour over peppers and onions; toss well.
Place pan on grill over medium-low heat and cook about 40 minutes, stirring occasionally until vegetables soften and brown slightly. Stir in remaining 1/4 teaspoon salt and sugar. Serve with grilled sausages and crusty bread.
Makes 3 to 4 servings.