Hamilton City Council thinks it could be the next city to have a regional fuel tax, despite the Prime Minister ruling out any more while under her leadership.

Documents obtained by Newshub show that throughout 2018, the council and the Ministry of Transport discussed the possibility of implementing a sub-regional fuel tax.

Meeting notes from February 2018 reveal the ministry agreed that a legislative amendment to the law could allow for a sub-regional approach which would work for the fuel companies.

The documents also show there was an aim to prepare an amendment and implement it by 2020.

Hamilton's growth and infrastructure committee chair Dave MacPherson says a fuel tax is critical. He told Newshub work to get one over the line will ramp up later this year.

"We're not far off pushing the go button with Government for a second shot at that. A good time to start in the discussions over transport will be over the next year so we can get it locked down to start in just under two years time.

"We've put it on the table with the Ministry of Transport. Beyond that we haven't made any moves but we sure will in about four months' time otherwise we're going to have the gridlock that's been in Auckland."

Hamilton was also encouraged by the ministry to work with Waikato Regional Council on a regional approach. Officials raised concerns about people avoiding the tax by refuelling outside of the taxed area which would be easier in the city.