How much is too much?

According to AAA, the average price of a gallon of gasoline in the state of Washington is $3.15 right now, up 30 cents from a month ago. That's only 2 cents lower than the highest it's ever been in the area, the second highest average in the nation, and yet gas usage hasn't declined at all. How much is too much, before people start reducing their gas usage?

It's true that the gas prices in the US are far cheaper than in Europe, where most of Europe pays up to and more than twice the price we pay at the pumps, but the outcry is great here each time fuel prices rise to what is still far less than European fuel prices. The difference is the reactions to fuel prices. While prices in the US are very high in terms of what the US has paid at the pump, there hasn't been much move towards decreased driving, carpooling, or taking alternative transportation options. Also, in Europe, there are far more efficient cars and people focus more on purchasing cars that are smaller and more efficient. There is a much greater demand for fuel efficient cars and diesel-fueled engines there. Sure, hybrid vehicles are being produced and have increased in usage somewhat, but not nearly to levels that would seem natural in response to the rising fuel costs. Many foreign cars that are smaller and more efficient never even make it to the US because of little expected interest in them.

Europe pays far greater taxes on fuel which explains the higher fuel costs over there. If the US increased the taxation of fuel here, would it have a greater effect on fuel usage? It seems that a great increase in the tax, and thus the cost of the gas, would push people to think about their fuel usage instead of just complaining about it. It would reduce the number of cars on the road as fuel became unaffordable for some. Hopefully, it would also create a bigger push towards more fuel economic cars hitting the market. Those tax dollars could also be used to pursue more mass transit options to further lessen the use of fuel, at least in personal autos. Unfortunately, it would be an incredibly hard sell to push increased taxes on fuel when they are reaching up close to record highs for the US. It's hard to swallow now, but I believe it would create a better situation overall in the long-run.