A County Durham petrol station that has been branded 'incredible' by motorists is massively undercutting supermarket costs, as prices hit 139.7p. 

Bishop Auckland's G.W Holmes, which is based in Etherley Moor, has been offering consistently cheap petrol prices for many months, which has won favour with a lot of motorists in the region. 

Despite being a relatively rural garage, it has always been appreciated by those who live near Bishop Auckland that they are cheaper than supermarkets. 

In their most recent prices, the garage is offering petrol at 139.7p and diesel at 148.7p, which is significantly cheaper than supermarkets in the area. 

Compared to Asda, Morrisons and Sainsbury's in Bishop Auckland, the Jet garage at Etherley Moor is at least two pence cheaper. 

Reacting to the prices, drivers have been loving the garage online, with one person calling it "simply incredible," while another pointed out that it was "putting the supermarket brands to shame".

These petrol prices from G.W Holmes come as motoring groups welcomed Jeremy Hunt’s decision to freeze fuel duty.

The Chancellor confirmed in his Budget that the 5p per litre cut implemented in March 2022 will be retained for another 12 months, and fuel duty will not increase in line with inflation.

This will save the average car driver £50 next year and bring “total savings since the 5p cut was introduced to around £250”, Mr Hunt said.

The Northern Echo: The petrol prices have hit 139.7pThe petrol prices have hit 139.7p (Image: G.W HOLMES)

When the fuel duty cut was first announced, it was expected to save car drivers £100 annually.

A Treasury spokesperson said the reduction is due to the fall in the price of fuel.

Government figures show the average cost of a litre of petrol and diesel at UK forecourts is around £1.45 and £1.55 respectively.

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Prices reached record highs of £1.92 for petrol and £1.99 for diesel in July 2022, largely due to Russia’s invasion of Ukraine leading to an increase in the cost of oil.

RAC head of policy Simon Williams said: “With a general election looming, it would have been a huge surprise for the Chancellor to tamper with the political hot potato that is fuel duty in today’s Budget.

“But, while it’s good news that fuel duty has been kept low, it’s unlikely drivers will be breathing a collective sigh of relief as we don’t believe they’ve fully benefited from the cut that was introduced just two years ago due to retailers upping margins to cover their ‘increased costs’.”