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Ever wonder when stations started adding fractions to the price of gas? – Orange County Register

Q. Honk: Why is gasoline sold for a fraction of a penny when 100% of people can’t change it for 9/10 cents? Prices are rounded off unless purchased in units of 10 gallons. You can’t use fractions to buy a gallon of milk!

– Dennis Crane, Costa Mesa

A. “It started in the 10s when the gas was nickel,” he said. Ed JacobsenAlso known as Jake the Oil GuyOf course, it refers to the last century. “It started with taxes from various entities.”

He said the gas station at the time thought “it wouldn’t eat” and just passed the tax on to the customer.

Jake Oil Guy knows.

He once owned six gas stations and is now North Woods Petroleum Museum, 2 miles north of Three Lakes, Wisconsin. In Wisconsin, you’re free to roam over 4,000 pieces, including old-fashioned petrol pumps and billboards.

It’s more clear these days why gas is, for example, $ 3.999.

“It’s a marketing strategy, there’s no doubt about it,” he said.

Honk and Jake the Oil Guy were amazed during the chat that most drivers probably recognized it. Still, I actually saw the $ 4 sign and thought the cost was more attractive at $ 3.99.

At the time, Jake the Oil Guy had to mess with the charts to calculate the cost, unlike today when gas station clerk is willing to calculate, even at 9/10. Said.

Hongk dusted the abacus and did some math himself.

Last year, 123 billion gallons of motor gasoline were consumed in the United States, according to the Energy Information Administration.

At 9/10 cents per gallon, the additional revenue from the gas station is $ 1.1 billion.

Ever wonder when stations started adding fractions to the price of gas? – Orange County Register Source link Ever wonder when stations started adding fractions to the price of gas? – Orange County Register

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