A congestion charge on Auckland's clogged roads now looks likely and it could take effect in the next five to 10 years.
Mayor Phil Goff wants a regional fuel tax for new roads. But Finance Minister Steven Joyce says the Cabinet has decided "we won't be doing that".
Mr Goff says they have a disagreement on that, but a regional fuel tax would "work efficiently, effectively and at low cost".
Instead, the Government is considering congestion charges which are used in big cities like Sydney.
Those extra charges could be offset with reductions in other levies like petrol taxes and road user charges.
"We don't see this as predominantly a revenue gathering exercise," Mr Joyce said.
"We see it as a way of getting a better result with the roading system and all the design features are yet to be discussed."
Mr Goff says that won't ease Auckland's traffic problems for another decade and will leave it with a big financial hole in the short-term.
"We have got a $400 million deficit in spending on traffic and transport infrastructure," he said.
"If not a regional fuel tax what are we going to put in place? Because I am not going to do the alternative which is to put a 16 per cent increase in rate rises on Aucklanders."