A County Durham petrol station has been hailed after it was revealed that it has undercut supermarket petrol stations by selling it for eleven pence cheaper. 

G.W.Holmes in Etherley Moor, Bishop Auckland, has consistently been called the 'cheapest in the region' over the last few years - and has proved it once again. 

The fuel station, which was established in 1947, is offering petrol for 139.9p and diesel for 145.7p - giving its latest saving in time for the bank holiday this weekend. 

The Northern Echo: G.W.Holmes in Etherley Moor, Bishop AucklandG.W.Holmes in Etherley Moor, Bishop Auckland (Image: G.W.HOLMES)

In a post on its social media page, G.W Holmes said: "Closely monitoring Fuel Prices and another Fuel Drop for all our customers we Thank You all for your support we continue to work together and help you save on your motoring costs."

This comes after the RAC said the average price of a litre of petrol increased by 3p to 150.0p in April alone; including supermarkets in County Durham, such as Tesco, Sainsbury's and Morrisons.

It claimed drivers are being “seriously overcharged for diesel”, with average prices rising by 2p per litre to 157.8p in April.

Rising pump prices since the start of the year have added around £5.50 to the cost of filling a typical 55-litre family car.

The RAC is calling on the Competition and Markets Authority (CMA) – an independent non-ministerial Government department – to address “glaring issues” with fuel retailing.

It wants the regulator – which is responsible for monitoring prices and will oversee the incoming PumpWatch price transparency scheme – to tackle “unfair retailer margins which lead to drivers getting a raw deal”.

RAC fuel spokesman Simon Williams said: “Drivers are once again having to dig deep just to go about their daily lives.

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“Our data shows petrol and diesel have now gone up 10p a litre so far this year on the back of further increases in April of 3p and 2p respectively.

“Some of this is down to the oil price and the pound-to-dollar exchange rate making wholesale petrol more expensive for retailers to buy.

“But unfortunately, it’s also very apparent that retailers are making massive margins on diesel.

“Worryingly, the CMA’s warning shot about higher retailer margins at the end of March appears to have fallen on deaf ears, meaning drivers are once again being seriously overcharged for diesel.”