Abstract: During last 32 years (1980-2012), nominal price of gasoline have been increased but demand moved in the same way. In fact, low of demand has been declined. The main aim of the study is estimation of this function. Most of the time, the governmental officials tried to adjust gasoline consumption via price hiking but present study shows during last 32 years, nominal price and gasoline consumption moved in the same way. Every year, the government should pay large sum of money for imported gasoline as well as gasoline subsidize. Thus, people consumed it in inefficient manner and gasoline smuggling is a very popular job, especially near boundaries. In the last Iranian year about 70 million L of gasoline have been consumed daily in Iran. This research estimated relationship between nominal gasoline price and gasoline consumption. Estimated regression equation shows positive relationship between price and gasoline consumption. SPSS and EXEL software have been utilised for statistical estimation. The hypothesis is price policy cannot decrease gasoline consumption in Iran significantly and estimated results approved it.