Fuel pricing

  Chronos the 2nd 15 Apr 13
Locked

Something I read yesterday got me thinking. Can anyone explain why fuel is priced at say £139.9 a litre when 0.9 is not legal tender? And why the minimum purchase is usually 2 litres so if you wanted only a litre you could not actually buy it?

  Quickbeam 15 Apr 13

The pumps can't accurately dispense small amounts and we're apparently all easily fooled into believing that 99p is considerably less than £1

  Chronos the 2nd 15 Apr 13

Sorry as there is no edit function I must make another post to correct my original thread. There should be no £ in front of 139.9 so Quickbeam that should read as .9 of a penny or rather .9 of 1 pence. And .9 of 1 pence is not legal tender. I do understand your point about 99 in a price.

  Quickbeam 15 Apr 13

Maybe it's not it's not a legal tender amount in it's own right, but it can be used for calculating the final price.

Looking at a fuel receipt from this morning, I filled up for £70. For that I got 50.76lts at £1.379

Would I have used another garage if they charged a round 138p? I don't think so...

  Chronos the 2nd 15 Apr 13

But that means you have to buy multiples of 10 to round it up to a legal tender.

  spuds 15 Apr 13

I would imagine that its all to do with marketing and 'rounding off' to the next figure, and how people think that they are getting a bargain?.

  fourm member 15 Apr 13

We let ourselves be fooled and there's no easy way out of that. As you know, the 138 is always a lot bigger than the 99.

As you drive up you see the 138 sooner that the 99. And you respond to that.

If a retailer decided to bite the bullet and price at 139 he'd find everyone was stopping at the 138.99 down the road.

It's just a fact of life.

  Kevscar1 15 Apr 13

Many years ago when old money was still around a survey was done that foud out you got many more sales if the price was say £5.99 rather than £6.00. It was also to stop staff stealing. Complete £ no need to ring it up just pocket it. 99p and you had to ring it on the till to give change. of corse then it was £5 19 shillings and 11 pence

  oresome 15 Apr 13

I remember when furniture shops always priced items in guinneas. Few if any customers actually had such coins.

From memory a guinnea was 21 shillings so goods were actually 5% dearer than they appeared at first glance.

  Chronos the 2nd 15 Apr 13

Sorry but you all seem to be missing the point here as .9 of one pence is not legal tender. I am not talking about 99p which is of course legal tender as the nine can easily made up using 2p's or 1p's and a 5p and a mixture of all three but .9 of one pence cannot be.

  csqwared 15 Apr 13

I'm with you on this one Chronos the 2nd and I think Quickbeam proves your point nicely. 50.76lts @ 137.9p = £69.99.8 which cannot be achieved using legal tender so it's rounded up. Now there's a surprise!

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