People also ask
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 Still fractions of a cent, but the 9/10 figure to account for it is long outdated.