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
Middlesbrough have failed to win any of their last five matches, and find themselves in the bottom half of the table
Ministers are ready to reduce the waiting time for Universal Credit payments following an outcry from Tory MPs, it has been suggested.
Three campaigners are occupying a work-over rig at Kirby Misperton in North Yorkshire to protest over plans to frack at the site.