A bold fuel price cutting move by a Pembrokeshire filling station has led to it selling what is thought to be the UK’s cheapest diesel.

Petrol prices at the small business alongside the A477 road at Llanteg have also been slashed to make them the lowest throughout both Pembrokeshire and Carmarthenshire.

As a result, trade at the pumps at the High Noon Stores is up by 60 per cent and rising, said co-owner Gordon Miller.

He and business partner Rhys Evans - who also own another High Noon near Carmarthen - have been working to boost trade at the shop and petrol station since they took it over in May 2010.

“We’ve been thinking about dropping our fuel prices for some time, but never took the plunge,” said Mr Miller. “But people are becoming more and more perceptive of petrol prices, and when it got to the stage that even my wife was driving to a supermarket to get the cheapest fuel, we thought we’d give it a go last Friday.”

Dropping unleaded down to 131.9 a litre, and diesel at 134.9 last weekend was a ‘calculated gamble’, said Mr Miller.

“It means we are selling our fuel virtually at cost, but we hope the extra customers at the pumps will translate into more business for the garage’s Spar shop.

“We plan to keep our fuel prices low in the long term as a service to the community - while we appreciate the extra business that the tourist trade brings, we are obviously seeking local custom year-round.”

The garage is now waiting to be listed on fuel price comparison site www.petrolprices.com, which, when last updated, shows the UK’s cheapest price for unleaded as 129.9 and diesel at 134.9, with the local leader board headed by Asda, Pembroke Dock with prices of 132.7 for unleaded and 136.7 for diesel.