How was the 9/10 (.9) of a cent arrived at for gas pricing?

Question

In over 40 yrs of pumping gas I have never seen 9/10 (or a derivitive) of a cent on the total price for gas pumped.

Answer 1

I asked my father that question when I was young and he said that the amount of the gas tax used to end in 9/10 of a cent, so that is what was charged. Even though the fraction of a cent is no longer used as part of the gas tax, it became customary to charge it.

Is that true? I don't know for sure, but it satisfied me. : )

Answer 2

It is basically used so that the station just rounds up because of the extra .9 cents. Personally whoever decided to put that .9 on there should be sent away for a long long time at a nice mental institution.

Answer 3

It's marketing. $49.99 is a lot cheaper than $50. Well, really, no it's not.

Psychologically the message is that it is NOT a full cent more, so it must be cheaper. Now everyone does it, and it plays heck with calculating gas mileage and prices, at least in my head. OK, I use a calculator, but it's that darn $2.769 price thing.

Answer 4

Just like everything else, you brain thinks it is cheaper and your getting a good deal if they gave you a round number, it sounds like allot more, it is a trick of the brain.

If someone said I have a car for sell and it cost twenty thousand dollars ( $ 20,000.00 ) it is harder to sell
but if advertised as a steal at nineteen nine ninety nine ninety nine ( $ 19,999.99 ) the brain thinks it is a better deal.

another example,
you can get this ( whatever ) for 1.99 makes you feel your getting a better deal but you think about it more if it says 2.00

Answer 5

i got an old sign that says 8 gal for a dollar

Answer 6

good one and no clear answer on this question.