ABSTRAK
Transport sector is largest contributor of CO2 emissions in Indonesia. To reduce the emmisions, a policy of adding pertalite is applied which aims to llow consumers to switch into higher quality gasoline. This paper examine the impact of the implementation of the policy of adding pertalite. The approach uses fixed effect of panel data estimation method . In the period 2010-2015 pertamax price have a negative impact on pertamax and premium consumption. Meanwhile, the prices and revenues of selling premium have a positive impact on consumption of pertamax and premium. For the period 2016, the impact of the pertamax price increase would be a decrease in pertamax and premium consumption. Changes in the pattern of gasoline consumption is possible because of the difference in price and supply constraints for each type of gasoline. Therefore, the government should control the supply of gasolines and the differences in gasoline prices so that more premium consumers will switch to pertalite, and pertalite consumers will switch to pertamax.