# Why is a gallon of gas 9/10 of a cent? **URL:** \ **Category:** Factual Questions\ **Created:** [May 1, 2009, 2:49pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969 "2009-05-01T14:49:33Z")\ **Posts on this page:** 13\ **Page:** 1
**Author:** ![CJAM014](https://avatars.discourse-cdn.com/v4/letter/c/58956e/32.png) [@CJAM014](https://boards.straightdope.com/u/CJAM014)\ **Post date:** [May 1, 2009, 2:49pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/1 "2009-05-01T14:49:33Z")
I have searched & searched to find out why this started and by whom. What was the purpose and why is it continuing? I know the JC Penny 99 cent idea, and maybe that was it. Any insight would be great.😕 ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [May 1, 2009, 3:03pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/2 "2009-05-01T15:03:10Z")
Discussed often. Covered in my [Unofficial FAQ](http://www.seiglefamily.com/gqfaq.html#gas) which contains links to prior threads. > [@CookingWithGas](#): > > When gasoline was down around $.20 per gallon, it was reasonable to price it in tenths of a cent when you were buying 10-20 gallons. However, as prices rose, the tenths have become nearly meaningless but carried along as a marketing ploy, even though everybody knows the ploy. The first gas station to change its price to $3.00 a gallon will suffer against the station down the street who still charges the “bargain” rate of $2.999. However, in spite of all the informative posts, I have seen none from an employee of the petroleum industry with an authoritative answer. ---
**Author:** ![Terminus\_Est](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/terminus_est/32/3087_2.png) [@Terminus\_Est](https://boards.straightdope.com/u/Terminus_Est)\ **Post date:** [May 1, 2009, 3:22pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/3 "2009-05-01T15:22:03Z")
Where’s the OP living that a gallon of gas costs less than $0.01? 😉 ---
**Author:** ![Chronos](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chronos/32/134_2.png) [@Chronos](https://boards.straightdope.com/u/Chronos)\ **Post date:** [May 1, 2009, 5:42pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/4 "2009-05-01T17:42:54Z")
I’ve heard that several gas stations actually charge the rounded price, anyway. That is, if the advertised price is $2.99[sup]9[/sup], and you buy 10 gallons, you’ll be charged $30.00, not $29.99 . ---
**Author:** ![Projammer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/projammer/32/559_2.png) [@Projammer](https://boards.straightdope.com/u/Projammer)\ **Post date:** [May 1, 2009, 9:06pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/5 "2009-05-01T21:06:56Z")
[This link](http://www.garamchai.com/askadesi/ask12.htm) pulls together most of what I have heard over the years. > [@](#): > > The use of fractional prices goes back to at least seventy or eighty years back. In 1914, a Texaco service station’s gas price was 14.5 cent per gallon. But 9/10 cent fraction pricing came during the ‘great depression’ of 1930s. About the only thing not mentioned that I have heard is something about a tax that comes down to the 9/10 of a cent. ---
**Author:** ![Jake](https://avatars.discourse-cdn.com/v4/letter/j/f475e1/32.png) [@Jake](https://boards.straightdope.com/u/Jake)\ **Post date:** [May 1, 2009, 9:38pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/6 "2009-05-01T21:38:46Z")
This borders on consumer fraud. (Well, **stupid** -consumer fraud.) ---
**Author:** ![Bob55](https://avatars.discourse-cdn.com/v4/letter/b/e9c0ed/32.png) [@Bob55](https://boards.straightdope.com/u/Bob55)\ **Post date:** [May 2, 2009, 2:10am UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/7 "2009-05-02T02:10:58Z")
This has always bothered me, and I think it shouldn’t be allowed. But I guess if enough people were upset they just wouldn’t buy gas at these places…evidently enough people are not upset over it. ---
**Author:** ![DesertDog](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desertdog/32/11503_2.png) [@DesertDog](https://boards.straightdope.com/u/DesertDog)\ **Post date:** [May 2, 2009, 2:44am UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/8 "2009-05-02T02:44:41Z")
> [@Bob55](#): > > This has always bothered me, and I think it shouldn’t be allowed. But I guess if enough people were upset they just wouldn’t buy gas at these places…evidently enough people are not upset over it. And just where would they buy non-.9 cent gas? If it’s not offered you _can’t_ make the choice. ---
**Author:** ![pilot141](https://avatars.discourse-cdn.com/v4/letter/p/e0b2c6/32.png) [@pilot141](https://boards.straightdope.com/u/pilot141)\ **Post date:** [May 2, 2009, 7:10am UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/9 "2009-05-02T07:10:34Z")
So, should my shiny new Blu-Ray disc not be allowed to be priced at $29.99? As long as that is the price that gets rung up at the register, it is legal. You can’t legislate against stupid people, as much as it would help things. ---
**Author:** ![Darryl\_Lict](https://avatars.discourse-cdn.com/v4/letter/d/7cd45c/32.png) [@Darryl\_Lict](https://boards.straightdope.com/u/Darryl_Lict)\ **Post date:** [May 2, 2009, 7:27am UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/10 "2009-05-02T07:27:05Z")
Recently the 99¢ Only Store raised their prices to 99.99¢ rather than to $1 because of customer backlash. I guess their margins are so thin they can still eke out a profit for .99¢ more per item. I’m wondering how much longer they’ll be able to pull it off. ---
**Author:** ![CJAM014](https://avatars.discourse-cdn.com/v4/letter/c/58956e/32.png) [@CJAM014](https://boards.straightdope.com/u/CJAM014)\ **Post date:** [May 5, 2009, 4:57pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/11 "2009-05-05T16:57:30Z")
> [@Terminus\_Est](#): > > Where’s the OP living that a gallon of gas costs less than $0.01? 😉 WOW! Over 3,000 comments. If you will reread my question it asked about “9/10 of a cent” not $.09 or 9 cents for gas.:smack: And by the way, what exactly is OP? My thanks to the others who were helpful or have the same question.😃 ---
**Author:** ![Giles](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giles/32/60_2.png) [@Giles](https://boards.straightdope.com/u/Giles)\ **Post date:** [May 5, 2009, 5:03pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/12 "2009-05-05T17:03:20Z")
> [@CJAM014](#): > > WOW! Over 3,000 comments. > > If you will reread my question it asked about “9/10 of a cent” not $.09 or 9 cents for gas.:smack: > > And by the way, what exactly is OP? My thanks to the others who were helpful or have the same question.😃 9/10 of a cent is $0.009. And the OP is the original post (or original poster, who is you in this case). ---
**Author:** ![Terminus\_Est](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/terminus_est/32/3087_2.png) [@Terminus\_Est](https://boards.straightdope.com/u/Terminus_Est)\ **Post date:** [May 5, 2009, 5:04pm UTC](https://boards.straightdope.com/t/why-is-a-gallon-of-gas-9-10-of-a-cent/494969/13 "2009-05-05T17:04:53Z")
> [@CJAM014](#): > > WOW! Over 3,000 comments. > > If you will reread my question it asked about “9/10 of a cent” not $.09 or 9 cents for gas.:smack: > > And by the way, what exactly is OP? My thanks to the others who were helpful or have the same question.😃 OP == Original Poster (i.e, you) 9/10 of a cent == $0.009 \< $0.01 [[Unless you work for Verizon](http://verizonmath.blogspot.com/2006/12/verizon-doesnt-know-dollars-from-cents.html)]