Can anyone tell me why gas is sold (example) 2.69 9/10ths. What is that 9/10ths about?

Question

Gas is sold by the gallon in the US. The price of each gallon is so many dollars, so many cents and 9/10ths. Now here is my problem.

That 9/10ths leaves gas in the sellers tank and not the buyers. Gas that the buyer paid for........gas that the seller, sells a second time. With gas prices in the USA being what they are....I think it is time for this to stop. "I want what I paid for" Don't you?

Answer 1

It's a taxation issue.  The federal government's highway taxes cause the 9/10th's of a cent price.

You're not losing anything, though.  If you buy exactly 10 gallons of gasoline at $2.999/gallon, then it costs you $29.90.  Whatever volume you buy is calculated by the computer in the pump and you are charged correctly.  The stations aren't cheating you.  If you buy something at a store, your tax isn't calculated exactly, it's rounded to the nearest penny, just like gasoline.

You are correct if you want exactly some amount that doesn't equal a rounded amount of cents, but we're talking about thousandths of a gallon here...

Answer 2

USING NINE-TENTHS AS PART OF THE PRICE OF GAS IS A MARKETING TECHNIQUE.

FOR INSTANCE, A $2.79 AND NINE-TENTHS SOUNDS CHEAPER THAN $2.80, AND READS BETTER ON A SIGN, ESPECIALLY A SIGN FAR DOWN THE ROAD.

Answer 3

Many places do this in order to make the price look less than it is.  For example, when Burger King whoppers are 99 cents instead of $1, the price seems lower than it actually is.  

When gas was cheaper, it made a bigger difference.