G.W. Holmes & Son in Bishop Auckland has announced its unleaded petrol will be priced at 129.7p per litre, while diesel will cost 135.7p per litre.
This is seven pence cheaper than the national average for unleaded, which currently stands at 136.9p, and almost eight pence cheaper than the national average for diesel, which is 143.2p.
The petrol station has been praised by customers for its low prices.
Eric Robson said: “This has to be the best garage/company in the motor trade in the whole of the North East, and far beyond to be fair.”
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The low prices come despite UK inflation increasing in December for the second month in a row, with the cost of train travel, petrol, and live entertainment among those set for increases.
Economists have said inflation levels were driven by an increase in petrol prices.
G.W. Holmes & Son has also announced that all other departments have returned to full working hours and capacity.