Coles Group (ASX:COL) and Viva Energy (ASX:VEA) have entered into a new alliance agreement until 2029.
Viva Energy will pay $137 million to renew its fuel partnership with Coles.
Under the revised alliance, Coles will receive a commission per litre from Viva Energy based on fuel volumes achieved.
Viva will be responsible for setting the retail price of fuel and receive the retail fuel margin.
As a result of the deal Coles will no longer have exposure to retail fuel price movements.
Viva Energy CEO, Scott Wyatt says together the companies represent Australia's leading fuel and convenience offer.
Shares in Coles (ASX:COL) are trading 1.89 per cent lower to $12.49.