Re: 9/10 of a Cent

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Posted by Jim Potts on July 28, 2000 at 23:22:09:

In Reply to: 9/10 of a Cent posted by P.A.Parrott on July 28, 2000 at 20:24:17:

: I am curious to find out about the extra 9/10 of a cent added to the cost of a gallon of Gas. If anyone could tell me Please email me. Why not $2.00 instead of 1.99 and 9/10. Thanks for your help.

Hi P.A.,
Some early price signs on gas pumps show this practice goes back a long way. Some prices ended in 5/10 or 8/10 not just 9/10. Taxes imposed by federal, state and local governments were sometimes in fractional cents per gallon. I believe the tax complication and the competitive appearance of 49.9 looking cheaper than 50.0 are both reasons for 9/10 pricing.
Check the link below. The author offers an explanation of gas pricing logic and suggests a change for the better.

Jim

9/10 gas price Web site

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: : I am curious to find out about the extra 9/10 of a cent added to the cost of a gallon of Gas.  If anyone could tell me Please email me.  Why not $2.00 instead of 1.99 and 9/10.  Thanks for your help.

: Hi P.A.,
: Some early price signs on gas pumps show this practice goes back a long way.  Some prices ended in 5/10 or 8/10 not just 9/10.  Taxes imposed by federal, state and local governments were sometimes in fractional cents per gallon.  I believe the tax complication and the competitive appearance of 49.9 looking cheaper than 50.0 are both reasons for 9/10 pricing.
: Check the link below. The author offers an explanation of gas pricing logic and suggests a change for the better.

: Jim



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