9 May 2007
Why we'll never see the last round-up
WiseGeek calculates that the extra 0.9 cent tacked onto the price of a gallon of gas mounts up quickly:
According to the U.S. Energy Information Administration (EIA), "prime suppliers" of "motor gasoline" reported sales of 372,833.5 thousand barrels sold in February 2007. Each barrel represents 42 gallons, and to determine the value of 9/10 of a cent for each gallon, we did the following calculation: 372,834 x 1000 x 42 x .009 = $140,931,063.
I think it's interesting that they rounded up the number of barrels to the next integer, but still, we're looking at $1.7 billion or so for an entire year, just from that nine-tenths of a cent.
They took it one step further: what if the price were jacked up, not by $0.009, but by $0.0099? Another $14 million for the month, another $170 million for the year, and besides contrarian cranks like me, hardly anyone would even notice.
Personally, I get annoyed when I see prices like $2.999: it's three dollars, dammit, and you should have the stones to say so.
(Via Outside the Beltway.)Posted at 6:25 PM to Family Joules