Abstract
The issue of gasoline demand is currently a major concern in the context of livelihood activities and is a fundamental pillar of interest at the local, regional, and global levels. Gasoline is a transparent, light liquid and a common fuel used in most vehicles such as cars and motorcycles. Gasoline is considered a major source of energy worldwide. Gasoline is primarily composed of hydrocarbons and is extracted from crude oil during the distillation process. Several other components are added to improve its performance, such as ethanol and other additives. The study aims to identify the nature of the relationship between gasoline demand and the most important explanatory variables affecting this type of commodity. It also aims to draw effective and appropriate economic policies to increase production in both the private and public sectors of this commodity. The research concluded several findings, including Demand determinants are best estimated using Ordinary Least Squares (OLS) for this type of data. The results of measuring gasoline demand determinants showed that the number of vehicles, total household income, number of vehicle licenses in the household, and number of household members are directly and positively related to the dependent variable. In light of the findings, the research proposes several suggestions, including Exploiting local energy sources to increase local gasoline production to reduce dependence on imports. Also, using renewable energy (clean energy) such as solar energy to power cars to protect the environment and reduce reliance on gasoline.