The proposal is intended to avoid the council’s heating and hot water account running into a “more significant deficit.”
The credit has been applied to residents using communal systems but imminent gas price rises have led to calls for a reconsideration.
A council committee report has revealed the account currently shows a surplus of £1.553 million.
But based on estimates for the financial year, without action being taken, the account will be in deficit by £952,000 by the end of next April.
The proposal to remove the fuel credit will reduce the projected deficit to an estimated £575,000 by the year’s end.
If approved, this would come into effect from November the 14th with charges re-established at existing levels.