Gas prices aren't that far out of line. That may be hard to believe, but it's the truth. Here is an article from MSN Money that puts things into perspective:

http://articles.moneycentral.msn.com/SavingandDebt/SaveonaCar/Why4DollarAGallonGasIsABargain.aspx?GT1=33007

Here are some interesting points that the article makes:

1.

When measured on an inflation-adjusted basis, the current price of gasoline is only slightly higher than it was in 1922. According to the Energy Information Administration, in 1922, a gallon of gasoline cost the current-day equivalent of $3.11. Today, according to the EIA, gasoline is selling for about $3.77 per gallon, only about 20% more than 86 years ago.

Given the ever-increasing global demand for oil products -- during the first quarter of this year, China's oil consumption jumped by 16.5% -- and the increasing costs associated with finding, producing and refining crude oil, it makes sense that today's motorists are paying more for their motor fuel than their grandparents and great-grandparents did.

2.

Gasoline is also a fairly minor expense when you consider the overall cost of car ownership. In 1975, gasoline made up 33.4% of the total cost of owning and operating a car. By 2006, according to the Bureau of Transportation Statistics, gasoline costs had declined to just 17.1% of the total cost of car ownership. Of course, fuel costs have risen by about $1 per gallon since 2006, but even with those increases, fuel continues to be a relatively small part of the cost of car ownership.

3.

Significant declines in U.S. oil consumption have occurred only after prolonged periods of high prices. Over the last two decades, U.S. consumers have been spoiled by low fuel prices. And those lower prices led to a buying binge that put millions of giant SUVs, pickups and other gas guzzlers on our roads.

4.

A gallon of gasoline in the U.S. is also dirt-cheap compared with gas in other countries. British motorists are paying about $8.38 per gallon for gasoline. In Norway, a major oil exporter, drivers are paying $8.73. In 2007, out of the 32 industrialized countries surveyed by the International Energy Agency, only one (Mexico) had cheaper gasoline than the United States.

Last year, drivers in Turkey were paying three times as much for their gasoline as Americans were. The IEA data also show that in India -- where the per-capita gross domestic product is about $2,700 (about 6% of the per-capita GDP in the United States) -- drivers have been paying more for their diesel fuel and gasoline than their American counterparts.

(Gasoline is also cheap compared with other essential fuels. A Starbucks venti latte costs the equivalent of $23 per gallon, while Budweiser beer runs $11 per gallon.)

That last quote is a great point. A gallon of gas is still cheaper than a gallon of milk, at least in my town. And I recently bought two bottles of Heineken in a bar for $4.50 each. Those two bottles, which cost a total of nine dollars, certainly did not equal one gallon! Examples are endless. If you do the math, you'll find that many of the things that you purchase would cost well over $4 for a full gallon. Of course, we generally do not use as many gallons of these things as we use gallons of gas. That is where laws of supply and demand and profit margins come into play.

My advice to my fellow consumers is to get used to high gas prices. The lifestyle changes that we make in order to afford these prices are likely to be long-term, if not permanent. Gas prices will go higher before they go lower, and when they do go lower, they are not likely to go down as much as we would like. We will need to make adjustments accordingly.

Another bit of advice: don't fall prey to the constant media negativity about the situation. Just as the media has been constantly focused on the negative aspects of the economy (which is still growing, albeit slowly, with low unemployment) and the Iraq war (in which we have made great gains), so will the media constantly try to demoralize us about inflation. Don't let them get you down.