A County Durham petrol station has been called "the best around" after undercutting supermarket prices by almost ten pence and selling the cheapest fuel it ever has.

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 again by impressing customers.

Established in 1947, the fuel station is offering petrol for 136.9p and diesel for 141.7p, further lowering its costs.

In Comparison, Morrisons in Darlington is offering petrol for 145.7p, while Sainsbury's is offering petrol for 146.5p.

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."

The prices at G.W.Holmes in Bishop AucklandThe prices at G.W.Holmes in Bishop Auckland (Image: G.W.HOLMES)

And it's clear from the comments section that drivers are loving all of the savings. 

One driver posted: "Long may you continue GW Holmes to lead the way and embarrass the big supermarkets with you customer friendly charges," while another simply added: "that's cheaper than Costco."

This news of petrol and diesel savings in Bishop Auckland comes after national headlines last month that said UK motorists are being hit in the pocket by “unfairly high margins” on fuel sales, a Cabinet minister has been warned.

The Competition and Markets Authority (CMA) must be given the power to take “meaningful action” against companies charging too much for petrol and diesel, according to a letter from the RAC to Energy Secretary Claire Coutinho.

The difference between the amount the average retailer pays for fuel and the price they charge drivers at the pump has risen above 18p per litre for diesel and is nearly 12p per litre for petrol.

That is well above the long-term average margin for both fuels, which is 8p, the RAC’s head of policy Simon Williams has warned.

Margins have risen in recent days on the back of wholesale costs reducing due to a drop in oil prices.

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The RAC believes if retailers charged “fairer” margins, the average price of a litre of petrol and diesel would be around 145p, down from the current prices of 150p per litre for petrol and 157p per litre for diesel.

Mr Williams wrote: “The RAC recognises that retailers, along with all businesses, have been affected by high levels of inflation, but we feel that current margins are extremely unfair on drivers struggling to get by in the cost-of-living crisis.

“In addition, having tracked fuel prices against the Consumer Prices Index, we can see there is a clear link between the two, meaning unfairly high margins are making inflation higher than it should be.”