This thesis deals with the demand for and the taxation of gasoline in Sweden, the US, Germany and Norway. If gasoline is an elastic good a high taxation would decrease the consumption for gasoline. If gasoline on the other hand is an inelsatic commodity a high taxation only increases the governments income. To answer this question the demand for gasoline is estimated and the short run price elasticities are compared. The Swedish regression shows that gasoline is an inelastic commodity. A closer look at the short run income elasticity shows that gasoline also is a normal good in Sweden. This imply that a high taxation on gasoline with the purpose to decrease the consumption on gasoline not will have the intended result in Sweden. The American, the German and the Norwegian regressions are not analyzed since they does not have the expected signs on the short run price respectively short run income elasticity of demand.