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Playing tricks at the pump

Topeka Capital-Journal, The, May 10, 2008

Gas prices are still charged to a tenth of a cent because it makes pump prices look lower, says Ken Peterson, director of the Kansas Petroleum Council.

"In this day and age that's not an easy thing to do," he said wryly. "This is one of the few industries in the whole world that puts its prices out on signs the size of billboards."

So putting smaller numbers on the big signs is a marketing tool. Advertising gas at $3.74.8 per gallon looks better than rounding up to the next penny.

"It's no different than when you go buy a shirt at the store and it's $29.99," said Tom Palace, executive director of the Petroleum Marketers and Convenience Store Association of Kansas. "It's marketing 101."

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Still, he adds that federal and state taxes get involved, too.

"Gas prices work in conjunction with state and federal taxes," he said, with a reminder that taxes are also calculated by tenths of a penny.

Playing tricks at the pump

Topeka Capital-Journal, The, May 10, 2008

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