"Please don't start into the free market rant or ask me to come up with an alternative system. But please note my original question and be strong enough to recognize the market system seems to be on holiday when the oil situation comes up."

How is gasoline market different than say beef, bottled water, or electricity, other than gasoline has been decade after decade at a fairly constant and low price. Beef prices can vary by as much as 50 to 100% in price difference on any given week, bottled water is always over priced, and here in California electrical prices are soaring and couple year ago we had the stupidity of controlled black outs.

For new oil refineries to be built, you need land to build them on. How much land is being offered to oil refineries for use? What crazy politican is pushing for an oil refinery to be build in their area?
How much easier is it to pass laws which restrict the yet to be built refineries than compared with existing refineries with the voters involved with this industry pressuring law makers.
And finally what besides cigarettes is more taxed than gasoline sales?
If this tax was removed and gasoline treated the same as any other product this would take out a large chunk of the existing price to consumers.