Up to $3.38 in central Illinois for 87.
US gas consumption is actually down >1%, but declining inventories are propping the price up.
The solution won't be making everyone buy a Prius, that is only delaying the inevitable. Car-dependent suburban living is not sustainable no matter what you drive. Mass transit isn't even the answer to current lifestyles, since it just isn't practical in low-density exurbs.
So what's the appeal in spending hours in a car everyday just to come home to a cookie-cutter community with no access (except by car) to basic services?
As for price , gas / fuel to make it to 2.96 per gallon at the pump you need $98.00 crude, have we seen that no.
Actually, we have (it was $112 less than 2 weeks ago). Oil has risen dramatically while refined gasoline has remained relatively cheap. Gasoline refiners have been getting killed with $100+ oil and market gasoline prices well under $2.50 until the past couple of weeks.
If you think gas is going to $4/gallon, buy some refiner stocks. Many are near their 52-week lows going into driving season.