The Mystery of Gas Prices: Why Do They Always End in 9/10?

Have you ever noticed that gas prices always seem to end in 9/10 of a cent? It’s a common practice at gas stations across the country, but have you ever wondered why? Let’s dive into the history behind this pricing strategy and uncover the reasons behind it.

The Origins of Fractional Gas Prices

Back in the early 20th century, when sales taxes were first imposed on gasoline sales to support highway construction, gas stations started pricing their fuel with fractions of a cent. This practice helped them to account for the taxes while still keeping the overall price competitive.

Unraveling the Mystery

Despite being a common sight on gas station signs, the practice of pricing gasoline with fractions of a cent is rarely explained to consumers. However, understanding the historical context can shed light on why gas prices always seem to end in 9/10 of a cent.

Conclusion

Next time you fill up your tank and see that familiar 9/10 at the end of the price, you’ll know that it’s not just a random number. It’s a legacy of early 20th-century tax practices that continue to influence gas pricing today.

Curious to learn more about this intriguing topic? Read more…