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It is nothing new that gas in other countries is higher than that in the US. Take Brazil for example, gas there is twice more expensive than in the US, and they have quite a few oil wells. Over there they have been using other substitutes for gas for a long time, FlexFuel is just appearing in the US now, they have had it for the longest time, IIRC the max octane there for regular gas is 89, and its watered down with other chemicals, also they use alcohol and natural gas to run their cars. The only reason E85 is comming into light in the US is because all the corn farmers are pushing for it, even though its crap, but they just want to make their money.
As for the price in gas, it keeps going up because there is more demand for it, sure wars and conflict in the middle east increases the price. Somebody blows up a pipeline and the price of a barrel goes up, why? because investors are afraid that the supply will be disrupted.
The recent surges in price of gas here in the US are attributed to the large demand of gas and the weakening dollar. If the US dollar is worth less compared to other countries, then it will cost more to buy gas. This is another problem that is comming up, the chinnese currency is gaining while the US dollar is decreasing, guess what all those electronics and made in china toys will cost more pretty soon.
Since the US is knee deep in a recession, the UK and other European markets have shown signs of slowing down also, which is not good, cause it will end up spilling over to all the Asian markets, and therefore a global recession.
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