Why three decimal points on gasoline pumps

[Snagglefoot]

Not sure if this was discussed earlier but why are there still three decimal points on the price of gasoline? It seems that any new pumps installed should just have two decimals which is standard for currency. For example gasoline might be 4.123 per gallon instead of 4.12 . It seems that one thousandth of a dollar is a bit ridiculous for something that costs three to almost six dollars currently. Is this already occurring in your area? Thoughts and preferences?

 

[ArrestMeRedZ]

All gas was priced in pennies plus 0.9 cents. Psychological thing. 29.9 cents per gallon seemed significantly less than 30 cents per, even though it was effectively the same.
Now that gas is $4 or $5 a gallon it doesn't really matter, but the custom has carried over. I don't think I've seen anything other than a 9 in the 10ths digit, but if you have, let me know.

 

[Snagglefoot]

All gas was priced in pennies plus 0.9 cents. Psychological thing. 29.9 cents per gallon seemed significantly less than 30 cents per, even though it was effectively the same.
Now that gas is $4 or $5 a gallon it doesn't really matter, but the custom has carried over. I don't think I've seen anything other than a 9 in the 10ths digit, but if you have, let me know.

You are correct about the 9 issue. ( it’s actually in the one thousandths position). Here is a shot I copied from a posting by @alarmguy

 

[Snagglefoot]

The pricing in Canada is just as ridiculous but in a different way. Gasoline is sold in cents per liter and even includes one tenth of a cent. Here is a shot from an Esso station. This worked OK when gas was less than a dollar per liter but it’s been over a dollar for years. The photo shows regular is 159.9 cents per liter. Once again, the last digit is a nine. This is especially hilarious when you consider Canada got rid of pennies years ago. When Canada went metric in the late seventies, gasoline in Alberta was 17 cents per liter.

 

[eljefino]

25 years ago, in Ohio, I saw a Sunoco offer 87 octane for $1.399 and 86 for $1.398. If I were a betting man the 86 was secretly 87.

 

[Snagglefoot]

I recall gasoline hitting $1.00 per gallon in 1990 in Houston. Maybe the weights and measures folks in government were hoping it would come back down.

 

[MasterSolenoid]

In the 1960's, the gas pumps had 'rolling' geared numbers.
As long as the 'next' number did NOT reach the arrow, you went with the lower cost.

They were simpler times.

 

[Hermann]

It's a Jedi mind trick to make you think it's a penny cheaper.

 

[Kira]

I don't think I've seen anything other than a 9 in the 10ths digit, but if you have, let me know.

Years ago during a cross-country trip (USA) I saw sixes in the thousandths column. EX: $1.256/gallon.
I was told the "tenths of a cent" column was used by legislators as part of the tax rates chosen.

In Sweden, where gasoline was essentially triple what it was here-as well as the rest of Europe...EXCEPT for Hungary, I saw a dockside gas pump with the term "Ore/l." enameled into the meter's face. An ore is 1/100th of a Krone.
My pal saw me reading the pump and said, "That was a long time ago".

 

[atikovi]

Why three decimal points on gasoline pumps​

Grammar police here, there is only ONE decimal point on the gas pumps.

 

[Snagglefoot]

Grammar police here, there is only ONE decimal point on the gas pumps.

Yes, you are correct: Decimal places. Thank you for the useful post.

 

[atikovi]

You're welcome. Always here to help.

 

[dadto2]

Not to mention... If you're paying cash in Canada and the pump stops at $85.07, there are no pennies so they stick you for the extra $.03!!!

 

[Rmay635703]

All gas was priced in pennies plus 0.9 cents. Psychological thing. 29.9 cents per gallon seemed significantly less than 30 cents per, even though it was effectively the same.
Now that gas is $4 or $5 a gallon it doesn't really matter, but the custom has carried over. I don't think I've seen anything other than a 9 in the 10ths digit, but if you have, let me know.

In ye olde times if gas was 10 cents a gallon a penny increase was a lot, around that time .gov decided to charge a fraction of a penny tax as well

Why Gas Is Priced Using Fractions of a Penny

Today's practice of gas prices that end in 9/10th of a cent began in the 1930s.

www.convenience.org

 

[sohccammer427]

What happens if you purchase one gallon of gas and ask for your .001 back?

 

[MasterSolenoid]

What happens if you purchase one gallon of gas and ask for your .001 back?

The store employee takes a penny out of her pocket and throws it at you.

 

[Foxtrot08]

Because wholesale fuels are priced to thousandths.

Some of the whole sale taxes, go that far as well.

 

[Jimmy_Russells]

Not to mention... If you're paying cash in Canada and the pump stops at $85.07, there are no pennies so they stick you for the extra $.03!!!

Actually in that scenario it would be $85.05 and the rounding only happens if you're paying cash.

I once told my friend (a major cheapskate) thet he could pay cash anytime they would round down and then use a card anytime they would round up. He was so happy, it probably saves him like $2.50 per year or something.