Why do gas stations hang on to this nonsense. Round up already.

Good question

Federal part of fuel tax?

What does it even look like, Does it evaporate if that much leaks out?

It was a sales gimmick adopted years ago when a penny mattered.

This. I remember my Dad driving past a station that had gas for .60. He knew the next station had gas for .59. Today, the difference between $4.39 and $4.40 isn't worth the extra drive.

It’s all about psychology. Same reason grocery stores price items at $12.98 instead of $13.00. Applies to new cars and most any retail items as well.

At todays prices it isn't worth going past a station with gas 10 cents higher.

I always did get a kick out of the people who wouldn't go to a gas station for a penny or 5 difference. In the typical 20 gallon tank, 5 cents is only a dollar difference. Even at 10 cents, its only 2 dollars difference.. With the prices now, 20 gallons at 10 cents difference is only a 2% difference or less (much less in CA, NY). Much bigger deal when gas is sub a dollar, but at 4+ dollar gas, 10 cents is silly to worry about.

I know, every dollar counts.

Competition helps keep prices in check.
Reward those that sell for less if the item is the same.

look at vehicles too, my 14 f150 had a window price of 49,999.00 but at least it wasn't 50 thousand.

people are weird.

way back when I started driving in the 60s you could literally sit on a corner and watch the gas wars, one station would drop price by a penny, next by 2 and so on till they were probably selling at cost or a couple of cents above. I really, really miss the 18c a gal. gas.

I remember them too.
Saw gas once in old downtown Richardson for $.14 a gallon.