Something I've Always Wondered

David Lazurus in the Jan. 7, 2009, Los Angeles Times, asked one of my perennial questions, "Why the nine-tenths of a cent on gas prices."

He writes that "gas stations go out of their way to mislead people with their archaic pricing system that serves no purpose but to make drivers believe they are getting a better deal at the pump than they are."

"Or, maybe you think it makes perfect sense for people to be charged nine-tenths of a penny per gallon more than the whole numbers displayed on the gas station sign."

Most people have never questioned it. That is just the way it is. Ask most people what $1.75.9 is, and they will say $1.75. Such a deal, only a mother could love. I always refer to that price as it really is, $1.76. Hey, if you BUY ten gallons, you save the whoop-de-doo sum of a whole penny!!! You can sure do a lot with that penny these days.

Lazarus talked with a spokesman for the National Association of Convenience Stores says that people perceive $2.29.9 as cheaper than $2.30. Right, one-tenths of a per cent cheaper.

Then, there was something about the federal governments Revenue Act of 1932 that imposed a penny tax of a gallon. At that time, gas stations switched to the .9 thing, and that's the way it's been ever since, even though the act is no longer with us.

I guess that at one time, 30.9 cents as compared to 31 cents would seemingly make a difference. But, definitely not at $1 and up (the column says we hit the buck a gallon mark in 1979). Come on, $3.99.9 or $4. I do remember seeing a lot of stations staying at $2.99.9 or $3.99.9 for considerable time, figuring the bad reaction to that addition of the extra one-tenth of a cent.

Thanks, Mr. Lazurus, for bringing up this question. Next time you're out, ask folks how they read those prices. Most will drop that nine-tenths.

It's Time to Drop That Nine-Tenths of a Cent. --RoadDog