We are paying aprox $1.35 per litre (about $4.90 per gallon)The priced has gone up quite sharly over the last couple of years...Hmmm wonder why??
There are actually quite a few reasons. The reality is that oil is not a limitless supply. Several scientists have estimated that we have reached the peak of oil (or will soon reach it). Production will be below demand. Eventually reserves will be exhausted. Despite oil being available in some places, the energy to energy ratio to extract will not be cost effective. It is possible that some of us will live long enough to see a generation that does not rely on oil (because they will have no choice).
The way to think about this is that we are in a transition phase much like when oil was discovered. It's just hard for many to wrap their minds around the concept that there will not be 1 replacement for it - likely it will be a combination of many (ethanol, solar, wind, cold fusion, etc) or that it can be price controlled by the consumer to any extent. Oil and its byproducts are used in our lives much more than most people think about - from plastic bags, medicines, and fertilizers to cars, boats & planes.
The best thing you can do is become educated on the subject and then look for alternatives in your life. Reduce your dependency on oil (carpool, bike, mass transit, walk) or begin weaning yourself to alternatives. Trade out your vehicle for a diesel that can be converted to biodiesel. Start looking at your Ziploc baggies/grocery bags in a new way. Ditto for medicine - can you use organic herbals instead of OTC? It's not so much a "green" ideology as a reality check on where oil and its byproducts are used.
Some good books to read on the subject of oil:
Beyond Oil by Kenneth Deffeyes
Hubbert's Peak by Kenneth Deffeyes
Power Down by Richard Heinberg
Financially related to Oil:
The Oil Factor by Stephen Leeb
Conquer the Crash by Robert Prechter
Resource Wars by Michael Klare
I've read all of these (and more) and it paints an interesting picture of today's reality that others strive to ignore because it's "uncomfortable".