The government is introducing legislation that will allow regions, initially Auckland, to apply for their own fuel tax.

Transport Minister Phil Twyford will introduce the bill to parliament on Thursday.

He says it will enable Auckland Council to seek funding for specific transport- related projects.

Funds raised in Auckland can only be spent in the region and the council expects to net up to $1.5 billion over a decade.

"Auckland is at a standstill and the Auckland Council understands the frustration of its ratepayers who are spending hours of their day stuck in traffic," Mr Twyford said.

"Auckland has gone through massive population growth in recent years and its current infrastructure can no longer support the city."

Auckland mayor Phil Goff said there was still some details to be worked out, but called the legislation a welcome first step.

"Aucklanders understand that with huge population growth and hundreds of extra cars on the road every week, the response of doing nothing simply leads to more congestion and gridlock," he said.

"A fuel tax is cheap to administer, contains a user-pays element for road usage and raises twice as much money as the Interim Transport Levy."

Rates would have to increase by 8 to 9 per cent more to reach the earn as much funding, Mr Goff said.

The previous government ruled the tax out.