True, but if you look at the price of gas since the 1980's when it was much higher, the price today is about the same. Prices rise and fall, but over the long run they haven't increased that much.
As the oil companies adjust to the increased demand from Asia and the supply disruptions from Katrina, the price will continue to fall.
It's an upward trend, though, even after you correct for inflation, because the supply is exhaustible. That's what happens when you've got an exhaustible commodity. How fast it goes up depends on how fast you use it. Right now, we are using it very fast, primarily because of the exponential economic growth in India, China, and Russia.
You can find some other points in history where the price was higher after correcting for inflation. One of those was after the OPEC oil squeeze in the 70's. However, I don't think that I would want to relive that. Comparing the current situation to that, and thinking that it proves things are pretty good, is just nuts. That was the blackest economic situtation since the Great Depression. It's not saying much to say, "well, it was worse then."