The subject of this dissertation is the domestic demand for petroleum based liquid fuels in the Republic of Indonesia. The objectives of the research reported in this dissertation were three-fold. First, the structure of the domestic market for petroleum fuels in Indonesia was to be analyzed in sufficient detail to identify the key factors influencing fuel consumption. Second, an econometric model quantifying the relationships between these key variables and the consumption of each of the eight petroleum fuels sold in Indonesia was to be developed. Third, the reliability of this model was to be examined by means of accepted statistical tests and through comparisons of both “ex post” and “ex ante” simulations of demand to actual historical sales.