Why do all gas pumps price gas to 1/10 cent? How did this idiotic practice start?

Question

It would probably save hardware, software, and ad space by rounding off to the next cent. Offhand, I can't think of anything else in retail that is priced to "one-tenth cent."

Answer 1

It has been going on as long as I can remember and that is back to the 50's. It's an old marketing trick to make things seem cheaper than they actually are. For the same reason most stores have prices ending in nine (9). Like 59 cents, 99 cents It just makes us think it costs less.

Besides that, it is always in small lettering, so in a way it is just like the small print in the TV commercials they have at the bottom that you can never read because they have it so small and then just flash it up there for a second.

Answer 2

yeah but have you ever bought gas by pumping it and it being priced to the 1/10 cent after pumping?

Truthfully, this is done to entice people to buy gas as most people forget about the 9/10ths cent listed on the sign (makes them think they are getting a discount..like the 99 cent stores).. so gas at $2.759 sounds better to people than $2.760

Answer 3

I believe 1/10 of a cent is part of the taxes. Just one more way for the government to get the extra pennies.

Answer 4

Is that the cost listed on the line sign or the cost programed into the pump? If it became into the pump fee, i could replenish my tank and each transportable field i ought to discover. i could even replenish used water bottles with gas just to hold close onto at that fee!! damn precise i could take great thing bearing directly to the area. They take great thing approximately us each and every bloody day, that's my turn!

Answer 5

the same reason most prices in stores ens in .99 , to squeeze the extra cent/dollar out of you...