Why do gas stations charge 9/10ths of a cent, and how do they even take that out of your bank account?

Question

Why do gas stations charge 9/10ths of a cent, and how do they even take that out of your bank account?

In: Other

Answer 1

Fractional prices first appeared in the early 1900s as states and the federal government implemented gas taxes to help build and maintain highways.

Back in the 1930s, when gas was just 10 cents a gallon, adding a penny would seem like a huge increase by 10%, so they went with less than a cent.

Source: CBS News