why 9/10 on gas price

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  • Why do gas prices go up 9/10 of a cent?

  • The practice of tacking 9/10 of a cent on the end of a gas price goes back to when gas cost only pennies per gallon and was a tax imposed by state and federal governments. Gas stations added the fraction of a cent on the end of the price instead of rounding up the price.

  • How much is 9/10 gasoline?

  • Gas priced at $3.19 9/10 is not considered $3.20 a gallon in our mind, but $3.19 (and given today鈥檚 prices, even $3.20 would seem like a bargain). When it comes time to pay, that fractional is usually rounded up to the nearest penny.

  • Why is there a 3/10 cent gas tax?

  • 鈥淲e have to go way back to when the oil companies were selling gas for, let鈥檚 say, 15 cents, and then the state and federal boards decided they wanted a piece of that to keep the roads going, so they added 3/10 of a cent. And the oil companies said, 鈥榃ell, we鈥檙e not going to eat that,鈥?so they passed that on to the public.鈥?/div>Why do gas prices end in 9/10 of a cent? – Marketplace

  • How much is tax on a gallon of gas?

  • As of January 2017, federal, state and local taxes accounted for 19.5 percent of the price of a gallon of gas, according to Investopedia. On average: Federal tax is about 18.4 cents. State tax is about 27.3 cents. Local tax is about 4.3 cents. Still fractions of a cent, but the 9/10 figure to account for it is long outdated.

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