Hawes in North Yorkshire is among ten areas that could benefit from a 5p-per-litre fuel duty cut.
The Government has applied to the European Commission to vary the duty rates.
Discounts have never been permitted before, but Chief Treasury Secretary Danny Alexander said the 'strongest possible evidence' had been put together to make sure an extension goes ahead.
Hawes was chosen because it has higher pump prices than other locations that already receive a discount. It is also more than 100 miles from the nearest refinery, and has a population of fewer than 135 people per square kilometre.
The commission is expected to announce its decision next year.
More top news
Gusty winds could cause problems overnight.
The two chilled soups incorrectly contain Quorn Standard Pieces rather than Vegan Pieces
The owners of a care home near York, where an elderly woman died of hypothermia, have been ordered to pay more than £1.6 million.