How can petrol companies charge us a price which includes a percent of a penny? If the cost for one litre is 97.3p, how much would I pay for exactly one litre? Why do they do their pricing like this when the 0.3p bit is not legal tender?
2006-09-22 08:43:12 · 13 answers · asked by Anonymous in News & Events ➔ Current Events
The price is not important - it is the principal of the 0.3p bit that is!
Oh, and does it mean we have to only buy a multiple of 10 litres at a time to get a fair price?!
2006-09-22 08:48:03 · update #1
I guess what I am asking is what is the legal basis for charging a percentage of a penny!
(and for those who say 'get a life' - what does it say about them answering the question!)
2006-09-22 08:57:05 · update #2
I have just been informed (by a lawyer!) that it is illegal to round prices up!
2006-09-23 07:24:33 · update #3
It must be legal. Its always been 97.?. It has never been to the pence yet.
2006-09-22 08:47:21 · answer #1 · answered by Sparky 2 · 0⤊ 0⤋
Well, I'm not sure, but it's probably analogous to US stations charging $d.cc.9/gallon here -- the 0.9 cents is part of the tax per gallon charged not by the gas companies but by the government. In practice, since there is no such thing as a part of a penny, it's rounded: anything less than half a cent is dropped, anything more is an additional cent.
2006-09-22 15:55:40 · answer #2 · answered by hogan.enterprises 5 · 0⤊ 0⤋
You really have an intelligent point. Yes a very good point actually. But I will tel you why. It is to give the public the impression that it is cheaper than 98p. Like much cheaper. Like 66% cheaper, get my drift. Its a F*****g con, that's what it is. So when you see97.3 you think its 66% saving per litre. Bull!
2006-09-22 22:06:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
British oil companies control quite a major share of oil market in the world along with American oil companies.It is a pity that gas is not at the same price as in USA or Canada it should be about 50p a liter.Some body is making a lot of money.
2006-09-22 15:56:02 · answer #4 · answered by Dr.O 5 · 0⤊ 0⤋
What they do is multiply it,then round it off to the nearest penny. One litre would cost you 97p, because it would be rounded up. Legal? Debatable!! By the way,where I am,petrol prices are at,86.9! Its just another con if you ask me! They are making HUGE profits,and being allowed to do so!!!!!!!! Thats why its called,"rip off Britain" by tourists!!!
2006-09-22 15:57:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
There are lots of financial calculations which are calculated to fractions of a penny and rounded off. Interest rates and foreign exchange rates are a couple of examples. Of course it is legal and we would not have commerce as we know it if it were not so.
2006-09-22 16:08:17 · answer #6 · answered by Robert A 5 · 0⤊ 0⤋
If I am not mistaken, money is always rounded up. So for 1 litre of petrol you would pay 98p. But I might be wrong on that...
2006-09-22 22:21:45 · answer #7 · answered by patabugen 2 · 0⤊ 0⤋
I bought a packet of biscuits. 46p for 20 biscuits.
They charged me 2.3p per biscuit. Isn't it the same thing?
2006-09-22 18:07:37 · answer #8 · answered by Anonymous · 0⤊ 0⤋
because the government set taxes that way. they figure it doesn't sound so bad when they raise taxes .3p per litter. To tehm it all adds up to millions in the end!
2006-09-22 15:51:43 · answer #9 · answered by Star G 4 · 0⤊ 0⤋
Same occurs all over Europe, my local garage is charging €1.05.9 which is roughly 71.2 p
2006-09-22 17:45:44 · answer #10 · answered by Anonymous · 0⤊ 0⤋