The demand for gasoline is a derived demand mainly for use in combustion engines in cars and airplanes. The US is responsible for 44% of the worlds gasoline consumption. The demand is linked to the use of vehicles for transportation and fuel for flying. As the price of gasoline increases, it increases the cost of transportation. Not long ago, a trend started that favored the purchase of Sports Utility Vehicles. However, the consumption of gasoline of these vehicles is high and now with the increase in gasoline prices, it is likely that the consumers may favor smaller cars that consume less gas. The cost of gasoline is dependent on the international petroleum prices that are soaring. The price has touched $134 per barrel and is predicted to increase even more. This is bound to increase the price of gas. The market conditions are not favorable. There are conscious attempts being made to manufacture low fuel vehicles, hybrid vehicles and even vehicles using alternative fuels. There are a large number of substitutes in the market like compressed natural gas, ethanol, hydrogen ......

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