Gas Prices and its domino effect

It's summer and once again the gas prices make their anticipated jump in the hopes that American will take vacations, drive more and cause more demand for gas. But guess what - economy has been in the dumps the last few years, job losses, unemployment and basically uncertain conditions have caused most of us to hunker down and weather the storm. So what really is fueling the rise in gas?
I do not completely buy the argument about growing economies. If Americans cannot afford current gas prices how can families in these countries far less a day afford high gas prices?
Already, I shiver when I have to travel. I drive if I can visit at least 3-4 chores and mentally map the shortest possible route.
Food manufacturers have already shrunk the amount of food in their packaging while keeping costs same. Others have raised their prices. Either way costs have gone up. Is there any company out there that has not raised prices?
How do you handle it?