Why gas prices always end in 9/10 of a cent

Drivers are furiously peering up at pump price boards every time they fill up their tanks as gas prices continue to rise.

According to AAA, the national average price for gasoline on Tuesday was little under $5.02. In some states, prices are considerably higher.

California had the highest average price in the country, $6.44 a gallon.

But why does the price of a gallon of petrol on gas station price boards always round down to 9/10 of a cent? No other merchants display their pricing in cent-flip increments.

Nowadays, pennies are so worthless that individuals choose to discard them or leave them on cash registers rather than retain them in their pockets.

Gas prices ending in 9/10 of a cent may seem strange or even needless, but there is a rich history behind them, as well as a cunning marketing tactic.

As states started enacting gas sales taxes to fund the construction and upkeep of roadways, fractional pricing first appeared in the early 20th century.

According to Ed Jacobson, a former gas station owner, the taxes at the time were assessed in tenths of a cent, and gas stations passed them straight to motorists.