The government doesn't set fuel prices, the oil companies do and base it on global oil prices. The global oil prices are susceptible to speculation in commodities markets. Whenever some sh!t happens in the middle east you can count on prices to spike. Free markets in action.
It doesn't matter how much oil we produce domestically, because it all goes in the same "pool", and our total potential reserves amount to taking a piss in that pool. In other words, it won't affect prices more than a few cents. Unless you want to nationalize our oil companies and set our own prices, we've got to eat it.