Gas prices... too high?

I heard on the radio yesterday that gas prices have reached $4 a gallon in the Bay Area. Ouch!

But I generally agree with this post that gas prices aren't "too high":

Look, in all seriousness. High gas prices are NOT an economic or political problem. They are the result of the natural workings of markets. There is nothing wrong with the market--and no reason, other than self-preservation and the false appearance of being able to do something, for politicians to intervene. Supplies are decreasing--both temporarily through unexpected refinery shut-downs and permanently through stock depletion. Demand is increasing--both in the U.S. and worldwide. Both of these will cause gas prices to rise and that's good. If gas prices don't rise, we will consume gas even faster and run out sooner. Higher gas prices encourage conservation and encourage investment in alternatives. High gas prices might be uncomfortable while we search for viable long-term solutions, but they're more comfortable than the alternative: no gas and no solutions.

To be sure, I don't personally know whether or not the petroleum market is working perfectly or not. But how much is gas supposed to cost, anyway? The fact is, we're running out of it and demand is high. Prices are going to go up, and unless people feel some pain, they have no incentive to change their behavior or find new solutions. You can't legislate more petroleum into existence, after all.

Likewise, McCain's gas tax holiday is idiotic.

Thanks to The Daily Dish for the first link.