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 of a gallon of gas?

  • A price of $2.29 and 9/10ths gives the individual the impression that they are only paying $2.29 per gallon when they are essentially paying $2.30- two insignificantly different prices that nonetheless make a world of difference when a customer is picking a gas station to fuel up at.

  • How much is the tax on gas per gallon?

  • The tax now sat at $0.015 per gallon of gas. At the same time gas station owners began breaking down the price of a gallon of gas by fractions of a cent, leading to the generally accepted theory that it was the fraction of a cent tax that resulted in gas station owners universally beginning to price their gas this way.

  • 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

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