Why Do Gas Prices End , in 9/10 of a Cent?.<br />CNN reports as gas prices continue their meteoric rise, drivers have looked up at <br />pump price boards angrily.<br />According to data from AAA, the average gas price in the United States now stands around $5.02 per gallon.<br />So why do gas stations advertise <br />prices ending in 9/10 of a cent?.<br />It may seem odd and unnecessary, but <br />there is history and strategy behind <br />fuel prices ending in 9/10 of a cent.<br />Fractional prices became commonplace <br />in the early 20th century.<br />as states across the country started <br />taxing fuel sales to construct and <br />maintain highway systems.<br />Since the average cost of gas at the time <br />was close to 10 cents per gallon, .<br />gas stations began adding fractions <br />of a cent in their pricing in order to <br />pay taxes levied against them.<br />Gas stations are also known to <br />set prices ending in 99 cents, <br />known as "just-below pricing.".<br />"Just-below pricing" can trick consumers <br />into believing they're getting a better deal.<br />To consumers, a price <br />such as 19.9 cents feels substantially lower than <br />the price of 20 cents. , Robert Schindler, professor of marketing at <br />Rutgers School of Business-Camden, via CNN
