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A price of $2.29 and 9/10ths gives the individual the impression that they are only paying $2.29 per gallon when they are essentially paying $2.30- two insignificantly different prices that nonetheless make a world of difference when a customer is picking a gas station to fuel up at.ou see, pricing gas by the 9/10ths of a cent works a lot like when other stores sell items for prices ending with â.99â³. Shoppers place much greater emphasis on the first number in a price and tend to ignore the least significant digits.
souleles also notes that while today s oil and gasoline prices are high in nominal terms they are in real terms close to or even below their 1980s peak a dollar isn t worth as much today as it was 20 years ago he says oil prices have not risen as much as people think in real termsraditionally we think of an opec supply side shock where prices go up because supply is restricted but there s a large demand component today the u s and china have increased their demand for oil and that has bid up the price