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 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