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11 January 2009

Why is gas priced to 9/10 of a cent?

This is the question I asked myself as I drove home from work the other day. I have always noticed it, really I didn't really think about it being there, but this is the first time I was determined to find an answer. I did some searching on the Internet and found that there really are no specific answers; but several theories abound.

One theory is that it was a result of the gas wars of the 1940's so that the oil companies can make their product seem cheaper. Another theory is that way of pricing gives the consumer a false sense of accuracy in the gas prices. Many retail studies have found that when prices end in 9, consumers will spend more money, much like pricing a product at .99 cents, rather than $1.00.

Wisegeek.com has a good write up on the subject and actually gives some facts on what 9/10 of a cent is worth. http://www.wisegeek.com/why-do-gas-prices-always-end-in-910-of-a-cent.htm

As for me, I'm going to start buying my gas from Donny's Discount Gas!


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