The Government is looking at ending the regional fuel tax fearing because it adds too much to motoring costs.
The tax was brought in by the Labour Government. It gives regional councils the power to charge up to 10 cents per litre on petrol and diesel to fund road and public transport projects.
Transport Minister Steven Joyce, says he's concerned about the impact of the combined cost of the national and regional fuel taxes.
He told Morning Report that in Auckland, for example, the policy means motorists could be paying 14 cents more per litre within three years.
He said an announcement will be made next week.