Boo Hoo and an Economics Question

When I see stories like this, I fail to get too sympathetic:

Gasoline prices hit a new record at the pump on Monday, but gas futures prices fell on concerns that $3 gas will crimp demand.

Oil prices, meanwhile, rose on reports of refinery problems in the U.S. and abroad.

The average national price of a gallon of gas hit $3.073 on Monday, up almost a penny from Sunday's also record-setting price, according to AAA and the Oil Price Information Service. Gasoline is now well above the previous record of $3.057, set on Sept. 5, 2005, soon after Hurricane Katrina.

I'm not sure if the photo I've uploaded here is truly legible or not, so I'll repeat it -- this is from a gas station in San Francisco with regular unleaded going for $4.33/gallon! The fact that the national average is just now on the wrong side of $3.00 is not something I lose sleep over.

I should also state that this particular gas station is way out of whack for even San Francisco, where prices seem to be around $3.60/gallon these days. This station, however, is located just off the freeway exit, and I'd assumed the inflation was taking advantage of this. But there's a station across the street from it that's always at least $0.50/gallon cheaper. Even with small tank cars, that's a noticeable savings. And the station in this picture does update its prices, almost daily it seems...which suggests to me that people do stop here and get gas. They must be the most price insensitive people in the whole world.

And yes, I took this photo while driving, in my SUV, and almost killed a cyclist in the process. I am, in fact, part of the problem.