The surge in the price of energy couldn't come at a worse time. The average price of regular gasoline in the United States has shot up to a record $3.28 a gallon. Combine that with the collapse of the housing market and the seizure of the financial sector, and it is putting a boot to the gut of an economy that is either already in a recession or close to one. One can't entirely blame the Bush administration for the pain at the gas pump. But its shortsighted policies - focused on increasing the energy supply, with little attention paid to conservation and greater fuel efficiency - mean the country is far too dependent on oil that is both ruinously expensive and ruinous for the environment. There are several reasons for oil's price spiral. Soaring demand in developing countries like China and India means there is little oil to spare. The turmoil in financial markets has driven prices even higher, as investors have bought oil and other commodities as stocks and the dollar plunge. Not everyone is unhappy with oil at $100-plus a barrel. Iran, Venezuela, Sudan and Russia are pocketing the profits and enjoying the political impunity that comes with such riches. If any good can come out of this mess, it would be an understanding - by corporations, consumers and government - that the era of cheap oil is truly over. With that, the country could finally focus on developing clean alternative energy sources and reducing oil consumption, a strategy that has served other countries well. Take cars. Until last December, Republican and Democratic administrations had refused to raise fuel-efficiency standards for 30 years. And raising the puny gasoline tax remains a political nonstarter. By contrast, in Britain, gas at the pump costs around $7.70 a gallon, of which about $4.90 is taxes. In France, taxes account for about $4.60 of the retail price of $7.50 a gallon. Higher taxes on energy mean other rich countries are more energy-efficient across the board. The average German or Japanese uses little more than half the energy consumed by an average American. In Germany and Japan, per-capita emissions of carbon dioxide spewed by cars, power plants and other sources of energy are half those in the United States. In France, they are a third. The landmark energy bill passed in December tightened fuel standards for the first time since 1975 - demanding a 40 percent increase in cars' and light trucks' average fuel efficiency by 2020. Still, the Department of Energy estimates that by 2022, the new standards would have reduced gasoline consumption by only about 2 million barrels a day, which amounts to a 17 percent cut in projected gasoline consumption. A lot more needs to be done. To start, the nation has to replace the oilmen in the White House with leaders who have a better grasp of the economics of energy and the interests of all Americans.