Okay, not tax, but close

Okay folks, here's a NON-TAX OPINION.
I think we should scrap the 4c per litre petrol discount system. Why? Because for the average petrol tank, you only save between $1.50 and $2 per fill. But the real caper is that the petrol industry is a very low margin business (from a retail perspective). Therefore, it is highly unlikely that the recently re-branded Coles/Shell and Woolies/Caltex outlets are happy taking a 4c per litre hit to their profit margins.

So how are the petrol chains going to maintain their profits? From all the extra profits that have been brought in through the supermarket chains!! The idea is that customers are more likely to shop at Coles to save 4c per litre at Shell petrol stations. Therefore, because of this deal, Coles brings in more customers, makes more money, and subsidises the petrol operation to keep the deal going.

Essentially, what's happening here, is that ordinary grocery shoppers are subsidising petrol consumers. Admittedly, I would imagine that vast majority of "ordinary grocery shoppers" are in fact the same petrol consumers. But there would be a significant portion of the population who cannot afford a car or to keep one on the road, and yet there are partially funding the expensive habits of car owners.

P.S. I shop at Woolies, and use the docket at the Waitara Caltex Woolies near the Blue Gum.