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Gas
Prices: Any Sense in 0.9 Cent?
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Why
does the price of gas end in nine-tenth (9/10) of a cent?
(E.g.:
Unleaded regular gas at a Shell station here in Westmont,
IL in February 2002 was 1 dollar and 14.9 cents.) Is it the
same theory like Bata chappals priced at Rs.69.95 back home
in India? Not really!
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The
use of fractional prices goes back to at least seventy
or eighty years back. In 1914, a Texaco service station's
gas price was 14.5 cent per gallon. But 9/10 cent fraction
pricing came during the 'great depression' of 1930s.
The great depression decimated the demand for gasoline.
More than 2.6 million cars and trucks were taken off
the road, and the consumption of gasoline was down a
billion gallons per year in both 1932 and 1933. Gas
stations fought to service. Production at the time was
running far above demand and the market quickly went
into a serious oversupply situation. It was at that
time that premiums such as candy, cigarettes, ashtrays,
dolls and countless other giveaway items made their
appearance at service stations. In such a competitive
climate the gasoline marketers of the day were attracted
to the concept of fractional pricing. Incidentally mechanical
gasoline pumps with provision to set fractional price
made their appearance at service stations around same
time.
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When prices
zoomed at the gas pumps during the oil crisis of the 1970s
and federal price and supply controls were imposed, individual
stations lost the autonomy to set prices. The government issued
mandated formulas for pricing, which resulted in unusual fractional
amounts. Most motorists were accustomed to the price ending
in 9/10th of cent, but reacted negatively to other arbitrary
fractions. So, 9/10-cent price convention continued.
True,
One of the smart marketing/selling/advertising techniques
is "show pleasing thing in big display and pricking info
in small print"!!
[Information
courtesy: C.F.Helvie, former Customer Relations Manager -
Mobil Oil Corporation]
How
Gas Prices Work
Gasoline
is the bloodline that keeps America moving. Our personal vehicles
alone guzzle 65 billion gallons of gasoline and diesel fuel
each year, and that number is projected to increase by 2.6
percent each year.
Tracking
gas prices can feel like a roller coaster ride. They're down
a little one month, up the next, before shooting up more than
50 percent in a year. Plus, they're different depending on
where you look. Other countries, and even other states and
cities, can have very different gas prices from your local
Gas-N-Go. To the average person, it probably seems as though
there's little rhyme or reason to how gas prices are determined.
In this article, we will look at the forces that impact the
price of gas at the pump, and we'll find out where your gas
money actually goes. - Read
More
Other Links
of interest:
- GasBuddy.com
- Find Low Gas Prices in the USA and Canada. Gasoline prices
change frequently and may vary by as much as 20 percent
within only a few blocks it is important to be able locate
the service station with the lowest priced fuel. GasBuddy
web sites allow motorists to share information about low
priced fuel with others as well as target the lowest priced
stations to save money when filling up at the pumps! The
website can help you find cheap gas prices in your city.
It is a network of more than 173+ gas price information
web sites that helps you find low gasoline prices. All web
sites are operated by GasBuddy and has the most comprehensive
listings of gas prices anywhere.
- Gas
Prices: Gasoline price information for all states and
selected US Cities. These links will help you find the lowest
price gasoline in your town.
- Gas
Prices - View gas prices in your area to find the cheapest
fuel from MSN Autos.
- Gas
prices around the world: Think you pay a lot for gas?
Perhaps you'd prefer to live in Venezuela. Gasoline prices
in the United States, which have recently hit record highs,
are actually much lower than in many countries. Drivers
in some European cities, like Amsterdam and Oslo, are paying
nearly 3 times more than those in the U.S.
- What
does gasoline cost in other countries? - Answer Desk - MSNBC.com
With gasoline prices rising relentlessly here in the U.S.,
Joseph in California is wondering whether drivers in other
countries are feeling the same pain at the pump that he
is. It turns out American drivers aren't seeing the worst
of it. But they're also not enjoying the kind of energy
bargains available in some parts of the world.
- Gas
Price Watch - Tracks gasoline prices at local stations
from reports provided by consumers.
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