Last time I went to the pizza house I had hair in both dishes that were served to me. There's either a wookie in the kitchen or I'm going bald. (either possible.)

I live in Ontario Canada. Gas here is anywhere between $4.30-4.75 a US GALLON, in CANADIAN DOLLARS (worth less than US Dollars).
Meanwhile, when I'm in the USA, I can get gas for anywhere in the $3.xx a gallon range.
It physically hurts to see people line up here for $4.10/US GAL gasoline. It hasn't increased public transit usage - after all, this IS North America, not Europe.

Raising prices (via tax) to give to the people (politicians) who can't spend the money properly is a BAD IDEA anyway.
It's like giving drugs to a drug addict. They'll just abuse it.

  Why don't you give incentives to the private sector -- Tax breaks on new cars where MPG meets a certain requirement? Gas guzzling cars would soon be off the market entirely as car makers would opt to make more efficient cars, as a profit margin on them would be greater due to lower taxes.