According to Ray Hennessey in "Tanks for the Memories," gas prices aren't likely to stay at their current highs, and they certainly won't keep going up at this rate. Want proof? Remember the 70's, when energy prices went up like crazy? We thought we were running out of energy sources, so we bought little deathtrap cars and weatherized our houses. Some people built underground houses or spent $25,000 for solar panels for their roofs. The weatherizing turned out to be a good idea, but many other crazy things we did weren't worth it.
I remember when gas stations had to add another digit to their price displays. The world didn't end. Most people's budgets were affected more when doctor visits went from $30 to over $100, or when college tuition quadrupled. You'd never know it, though, by the noise generated whenever gas prices went up another five or ten percent. Other budget items can rise relatively unnoticed, but not the price of gas.
Why do we get so excited about gas prices? Because it's so visible, I believe. Gas stations are one of the few places that advertise their rates every day in big numbers by the street. Most price hikes are sneakier. Now that grocery stores don't put stickers on every can of beans, we might not even know what their current prices are. They can raise the price of kidney beans 10 percent, and who notices? Good eggs cost almost $3 a dozen now - nobody talks about an egg crisis. But let gas prices go up, and even the President has to talk about it.
What's the harm in getting excited about the price of gas? For one thing, it takes your focus off other things you spend money on that you should be worrying about. For example, most people spend a lot more money on car payments and insurance than they do on gas. Focus on areas where you can save substantial amounts of money, like driving your car a few years longer and avoiding traffic tickets.
For another thing, worrying too much about gas prices can make you do something stupid. At best, you can circle around town burning fuel, looking for the station that sells gas for a penny less. At worst, you can decide to "save money" by trading in your car for a shiny, new fuel-efficient model - on which the sales tax alone will set you back farther than you will ever save on gasoline.
So relax. Drive less if you can, but don't panic. Gas prices go up; they go down. In any case, they are probably the least of our worries.