The New South Wales Government has signalled it may stop subsidising petrol in the state's north following changes to a Queensland scheme.
The Queensland Government has announced it will stop interstate drivers filling up with subsidised petrol as part of an attempt to stop fuel companies rorting the 8.345-cents-a-litre subsidy.
That could mean an end to the NSW petrol-shading system that allows north coast service stations to remain competitive by selling cheaper petrol.
Petrol prices on the north coast could jump by up to 8.5 cents a litre.
NSW Treasurer Michael Costa has conceded Queensland's move has forced a rethink.
"I've got to say that it's very hard, given what Queensland's done, to justify one part of NSW having a different set of arrangements in relation to fuel," he said.