Costcutter has signed a new three-year contract with Murco Petroleum to supply its 230 company-owned forecourts across the UK.

The deal covers both Murco’s full supermarket and smaller Express store formats, extending the relationship between the two companies that began in 1996.

Murco said that Costcutter’s new joint venture buying company with Palmer and Harvey was “particularly significant” in its decision to sign the multi-million pound contract.

Other factors in the decision were the introduction of a new Costcutter own brand, called Independent, and an improved multi-temperature delivery service through a nationwide spine of 14 depots.

Gary Pearce, Murco’s general manager non-fuel, said: “We are confident that with Costcutter we can continue to provide customers with an exceptional product range, top name brands at great prices, ongoing value promotions and an attractive shopping environment.”

Jamie Davison, sales director at Costcutter, said: “Murco has been a valued member of Costcutter Supermarkets Group for a long time and we very much look forward to the continuation of this relationship.

“We firmly believe that Murco and its franchisee managers will see significant benefits from our new buy and supply arrangements and, through our partnership with Palmer and Harvey, we are incredibly well placed to meet the needs of their large network.”