The fuel market has been widely studied at several perspectives, from the issue of asymmetry and transmission prices, cartels, dynamics linked to price fluctuations in the international economy, demand systems, among others. Thus, this paper aims to estimate a demand system for regular gasoline, hydrous ethanol and diesel via (LA-AIDS) Linear Approximation Almost Ideal Demand System with quarterly time series data for the period 2001-2015 in Pernambuco State (Brazil). The estimates were made using (SUR) Seemingly Unrelated Regressions. The results are similar to those observed in the literature, pointing to the inelasticity-price of demand for gasoline and diesel, which is expected given the essentiality of the assets. It was also observed that the demand for ethanol is elastic because of Marshallian price elasticity greater than one in absolute value, leading to the results already found in other studies.
Demand; Fuel; LA-AIDS; SUR.