Drivers in Hawes in North Yorkshire could see their fuel prices cut. It comes as part of the UK's application to the European Commission to extend the rural fuel rebate scheme.
The town was judged to meet strict criteria, for example showing pricing similar to that of islands currently eligible for discount.
The UK now needs to gain approval for the expanded scheme from the EC. If approved, it could cut up to five pence from the price of a litre.
The final decision on the scheme is expected next year.