Motorists in the world's most tolled city are breathing a sigh of relief with a popular rebate scheme being permanently extended.

Hundreds of thousands of drivers had been claiming about $8 million a month in rebates under NSW Labor's $60 weekly toll "cap" scheme.

But as the two-year scheme's end date of December 31 approached, the state government on Tuesday confirmed it would continue indefinitely.

The scheme helps ease household budget pressures, particularly in western Sydney whose drivers bear the brunt of Sydney's network of tollways.

"We want the toll cap to stay permanently. We want privatisation never to come back again when it comes to our roads," Treasurer Daniel Mookhey told reporters on Tuesday.

The government said it might reconsider reinstating two-way tolling on the Ha

See Full Page