Disruption of fuel deliveries in the run up to Christmas has been averted.
Pacific Fuel Haul, which delivers fuel throughout the country, says it's reached agreement after mediation with the union representing its drivers who were planning to strike next week.
The company says the new contract improves the pay and conditions of its drivers.
The agreement is being recommended by the First Union to its driver members.
Pacific Fuel Haul delivers fuel to the Z Energy and Caltex networks, and rural consumers such as farms, as well as bottled gas to hospitals and commercial users.