Today, half of the vehicles on the road are pickup trucks and SUVs, neither of which get many miles to the gallon. The little cars of the early 1980s are being forced off the road out of fear of a collision with the trucks and SUVs that dominate auto sales. A large part of the American public, even if sick of 16 miles per gallon, is afraid to ride or let their loved ones ride in a car small and light enough to get 40 miles per gallon. Ironically, most pickup trucks are not used for work and only for very occasional hauling. SUVs have little more utility than a Toyota Camry for most families, and may actually be less stable on the road than the average sedan.
Gas prices are subject to the law of supply and demand.
We have a finite supply of gasoline and a growing demand in part because the use per vehicle per mile has gone up. The increases in price are a natural consequence. The Bush-Cheney administration would rather find more oil than reduce our consumption per mile, and you can't help but figure their oil company backgrounds play a part in that position. This tactic plays well with a public far removed from the Arctic National Refuge or other pristine areas. America's romance with big, inefficient personal transportation is stronger than its appreciation of wilderness.