Half Gallon Pricing

Tribune-Review

As $4 per gallon gasoline becomes reality in Pennsylvania, Gov. Ed Rendell today announced that he will allow older gas stations to display half-gallon prices. This will not change the price of gas.

Some older, non-digital fuel dispensers cannot display prices exceeding $3.99. Until upgrades can be made, those stations will advertise half-gallon prices.

Fewer than 500 Pennsylvania fuel dispensers -- 0.4 percent of the state total -- might need the half-gallon pricing, according to the state.

Also included at these service stations, guys in snappy white suits to check your oil and your windshield washer fluid, and "regular" gas, so if your car is a model made before catalytic converters so it'll run good.

Tony Phyrillas is calling for a gas tax holiday.

The governor could provide Pennsylvania residents immediate relief from the state's 32-cent gas tax, but that's not likely to happen. Instead, the governor is now going to allow gas stations to sell gas by the half-gallon.

Imagine if the state and federal governments would suspend the gas tax over the summer.

As much as I loathe taxes, that's not the solution for the current high gas prices for two reasons.

Increased demand (due to lower prices and typical summer demand) on the same supply will drive prices right back up. Exactly how much the swing will be is a question for the invisible hand, however.

Secondly, once the holiday is over, we're screwed even harder when the tax comes back... which they will.

I'm all for cutting the taxes on gas down to sales tax level... and keeping them there though.

Exit questions: On stations that charge for half gallons, will gas now cost $2.00 4/10ths per gallon? or are they getting the extra half penny due to the rounding? Will a gas pump display anything but a 9/10ths? ... and why is that even there to begin with?

Posted by AlexC at May 23, 2008 4:46 PM