Costco has opened the cheapest petrol station in Reading today.

The fully self-service garage in South Oak Way has beaten its nearest competition by 5p per litre and some pumps by almost 20p.

Residents with a Costco membership can purchase unleaded Petrol for 149.9p per litre, premium unleaded for 157.9p and premium diesel for 171.9p.

Only Sainsbury’s in Calcot comes close, selling unleaded for 154.9p, ‘super’ unleaded for 161.9p and diesel for 176.9p.

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The catch: annual memberships cost £33.60 per year for individuals and £26.40 for trade, but depending on how much you drive, Costco could prove your cheapest option in the town.

Costco’s low prices are based on its business model, according to the American wholesaler’s website, which informs its one-way high-volume petrol stations.

The pumps include extra-long hoses that reach either side of the vehicle.

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The nearest garage to Costco Reading is  Shell in Basingstoke Road, which sells unleaded for 163.9p and premium diesel for 196.9p.

The top ten cheapest pumps in Reading besides Costco and Sainsbury’s are selling unleaded for around 158p to 160p.

Costco declined to comment on the opening of the station to avoid creating queues.