Woolworths is set to resolve some of the challenges its Petrol business has been facing with a new deal with Caltex.
New 15-year deal with Caltex
Caltex has supplied fuel to Woolworths since 2004. However, Woolworths Petrol Business has been treated as discontinued during negotiation for the sale to BP, which was eventually blocked by ACCC. A new 15-year deal has been agreed between the current business partners, adding another 125 Caltex sites to its existing network, where Woolworths' customers can redeem and earn Woolworths Reward points.
The deal is also expected to cut the cost of fuel for the 638 Woolworths' owned or operated sites by AU$80m a year, covering fuel supply, convenience stores, wholesale food and loyalty rewards.