Why the nine-tenths in gas prices?

[Raiden256]

Other than the obvious -- which is the idea that people are generally stupid and will think that gas @ $1.599 is gas @ $1.59 -- is there any real reason behind this weirdness?

Anybody know?

 

[Heisenberg]

To screw people out of that 9/10 of a cent.

 

[EyeMWing]

Same reason it's $1.59 instead of $1.60.

 

[spaceman]

to give the people a 1/10th cent price break

 

[Zim Hosein]

So you pay for every drop

 

[spaceman]

the real question is

Is 1 = 0.999999......





you knew someone had to post it.

 

[Anubis]

yes

Originally posted by: ncircle
the real question is

Is 1 = 0.999999......





you knew someone had to post it.

 

[FoBoT]

can someone confirm that in Iowa in the 1980's , they passed a law that prohibited this practice by gas stations?

 

[CrackRabbit]

Its a Federal Tax of some sort... lemme google it...

 

[JBAR]

Because it makes it seem that you are paying less. Same marketing scam as all things priced $X.99.

 

[silverpig]

Same reason why everything is priced that way.

Cause 99 cents looks to be $1 less than $1.
or 11.99 looks a buck less than 12.

 

[Kaervak]

It's marketing. Instead of $1.45 a gallon you get $1.44 and 9/10. People look only at the big number and think hey $1.44 a gallon, great. Same thing with $49.99 instead of $50. All marketing.

 

[Vic]

Originally posted by: Kaervak
It's marketing. Instead of $1.45 a gallon you get $1.44 and 9/10. People look only at the big number and think hey $1.44 a gallon, great. Same thing with $49.99 instead of $50. All marketing.

Yep. That is the reason. Same reason that soda at the store is $0.99 and not an even dollar.

Others can google all they want. This is the correct reason.

 

[Cyberian]

Originally posted by: CrackRabbit
Its a Federal Tax of some sort... lemme google it...

I'm pretty sure that the Federal Taxes are all in even $0.00 - I was just looking at State and Federal taxes on gasoline in preparation for a long road trip.

 

[CrackRabbit]

Quote

--------------------------------------------------------------------------------
Originally posted by: Kaervak
It's marketing. Instead of $1.45 a gallon you get $1.44 and 9/10. People look only at the big number and think hey $1.44 a gallon, great. Same thing with $49.99 instead of $50. All marketing.
--------------------------------------------------------------------------------

Yep. That is the reason. Same reason that soda at the store is $0.99 and not an even dollar.

Others can google all they want. This is the correct reason.

Then how come the current federal Gas Tax is at 18.4 cents a gallon?
and there are other various state taxes in there also, it could easily add up to 9/10 cent

Edit: the CNN Moneyline article i got the info from.

CrackRabbit

 

[DaviDaVinci]

Mine's at $1.35 9/10

Those signs come pre-made from the gas companies. Retailers have little to do with it. Go complain to GWB.

 

[AkumaX]

its not a fed tax, its just a way of milking every "cent"

 

[Crazymofo]

I always thought it was because the amount of gas was measured to the thousandths so the price needed to be too?

I agree with the scam argument though too

 

[mjquilly]

Because they can. If the grocery store could charge $1.999 for a gallon of milk, you better believe that they would. Gas is under different regulations, it is allowed to be priced differently.

 

[Yax]

Thinking about it. We're actually the winners because the stupid gas station clerks don't realize that 9/10 is really 90cents.

For example:
1.00 9/10 = 1.90 not 1.009

1.009 would be 1.00 9/1000

So don't feel so cheated. Be happy.

 

[PoPPeR]

Originally posted by: cheapbidder01
Thinking about it. We're actually the winners because the stupid gas station clerks don't realize that 9/10 is really 90cents. For example: 1.00 9/10 = 1.90 not 1.009 1.009 would be 1.00 9/1000 So don't feel so cheated. Be happy.

lol

 

[Vic]

Originally posted by: CrackRabbit
Then how come the current federal Gas Tax is at 18.4 cents a gallon?
and there are other various state taxes in there also, it could easily add up to 9/10 cent

Edit: the CNN Moneyline article i got the info from.

CrackRabbit

The 18.4¢ per gallon federal tax is only a small part of the total cost of a gallon of gas. The larger portions are state taxes (which vary widely), the dealer's mark-up, and the wholesale price (which is the majority of the cost). And wholesale gas prices fluctuate constantly and by minute amounts, not by whole cents.
Were your theory correct, then we would often see prices of ending in other fractions like 3/10, 7/10, and so forth (which is common in Canadian but then again, the govt. fixes their retail gas prices). But in the US, we don't see those other fractions despite the fact that all the other factors are in constant change.

 

[WinkOsmosis]

Originally posted by: cheapbidder01
Thinking about it. We're actually the winners because the stupid gas station clerks don't realize that 9/10 is really 90cents.

For example:
1.00 9/10 = 1.90 not 1.009

1.009 would be 1.00 9/1000

So don't feel so cheated. Be happy.

9/10 of a cent....

 

[Cyberian]

Originally posted by: DaviDaVinci
Mine's at $1.35 9/10

Those signs come pre-made from the gas companies. Retailers have little to do with it. Go complain to GWB.

Gas Stations have been using that pricing formula since GWB was in High School - I really don't think he's to blame.

 

[Howard]

In Canada we have tenths of a cent. i.e. 63.4 cents per liter.