Gasoline Prices: Why is gas sold with the extra $0.009 per gal tacked on?

Question

I know this is a tax! How did this start? And how on earth did it survive the years without being declared archaic and just rounded-up?!

Answer 1

Items like sweaters or gallons of milk have to be sold in even cents, since you can't pay part of a cent. Items where the quantity is a continuum like gasoline can be sold in partial cents, since you can sell whatever part of a gallon comes out in even cents.

And yes, the psychology of pricing sounds cheaper if something is 2.199 than if it's 2.20. Think how many items in the grocery store have prices ending in 9 cents - same idea.

Taxes on gas are a lot more than a portion of a cent. And who would declare the .xx9 pricing illegal anyway?

Answer 2

nicely, i think of speculators are bidding up the value of oil, no longer gas. i do no longer think of each physique is making income on gas - besides the undeniable fact that if i'm incorrect please enable me comprehend. after all, you'll be waiting to cost to conceal expenses, and adequate income to proceed to be in the corporation. in case you have gotten a value administration like that, then all of the different issues that top college Economics instructors drill into those different answerers head isn't a project.

Answer 3

Don't know but it's been this way 4 years

Answer 4

gee, and i thought it was because people will get more excited about gas that costs $2.999 than $3.00

Answer 5

child psychology