This study uses monthly data from September 2000 to September 2006 to examine whether the price adjustment asymmetries exist between crude oil costs and retail gasoline prices in Taiwan. If they do, which price transmission leads to the result? By establishing the error correction models and cumulative adjustment functions, it is first found that retail gasoline prices do respond more quickly to increases than to decreases in crude oil costs. The evidence supports the common belief of the public. Next the results reveal that the price asymmetries exist in both the first stage and the second stage. However, the adjustments of wholesale gasoline prices to changes in crude oil costs are mostly responsible for the price adjustment asymmetries between retail gasoline prices and crude oil costs. It is because the problem of price adjustment asymmetries is more serious in the first stage than in the second stage.