Why is gas priced at the end 9 /10 like 199 9/10?

Question

Why is gas priced at the end 9 /10 like 199 9/10?

Answer 1

The fractional cost of gasoline is due to federal taxes.  Every gasllon of gasoline you purchase sends 18.4 cents to the federal gov't.  Many states also charge taxes in fractional units.  In order to make it easier to manage pricing, the oil companies charge 9/10ths and the retail station, who makes less off a gallon of gasoline than anyone else, keeps the fractional difference.

Web link below shows state taxation for gas and diesel.

I hope you find this information helpful.

Answer 2

no one really knows why it is like that what it means on the other hand that you are really paying 200 for it.

Answer 3

I think it is supposed to make people think it is cheaper.  Kind of like a sale in a department store - $59.99 sounds cheaper than $60.00.