The article discusses the Pigovian taxation from the economic perspective. It explores the argument of Ronald Coase, author of "The Problem of Social Cost" from the "Journal of Law and Economics" in 1960, on the reliability of using Pigovian estimates. The theory of Pigou Externality articulates that tax should equal the marginal externality. Economists are urged on the use of higher gasoline taxes to deal with the externalities of driving, congestion and environmental damage.