The structure of gasoline demand in the GCC countries was analysed. Th
e aim was to estimate price and income elasticities both for the short
and long run. It was found that gasoline demand is inelastic with res
pect to both price and income for both the short and long run. When GC
C countries were divided into two groups based on their pricing polici
es, it was found that the group with the free market approach and high
er reliance on market forces gave larger price elasticities and smalle
r income elasticities in both the short run and long run.