[thackney]

3. I can buy a cheaper house.

But avoiding fuel purchase is impossible.

Your example explains it quite well. You can also purchase a higher mpg vehicle. You can live closer to work. You can travel less distance for vacations. You can combine trips or cut out nonessential. You don't eliminate the need for shelter, but there are choice to make that determines how much of your income you want to spend on this commodity. Are you telling me you have made zero changes in fuel consumption since prices were $1.50? Some people have put themselves in situations that make it difficult to significantly reduce consumption, such as living 50 miles from their work, but that is a choice as well.

[Saberwielder]

Using less fuel is similar to buying a cheaper house. You can also buy a more fuel-economical car or relocate to a place with mass transit. Even if you choose to own a car, you can combine trips, car pool etc.

Unless gasoline prices are based on market forces, people will not have incentives to adapt to the reality that gasoline is a dearer commodity.

I can understand the average American's difficulties with rising fuel costs but no one has a right to cheap gas or a high quality of life. In the end, market forces will encourage innovation and promote as high a quality of life in the US as circumstances permit. Non market forces always fail after a while.

[Cobra64]

Actually, the cost for a gallon of gasoline at the pump is cheaper today than it was 30 years ago.