Private-hire taxi drivers in Calderdale and Halifax are threatening to take their vehicles off the road over the Christmas and New Year periods.
The threat of strike action is a result of a dispute between the taxi drivers and Calderdale Council.
Sultan Mahmood, secretary of Calderdale Private Hire Association, said excessive council regulation was damaging trade. Mahmood said: "If we don't come to a resolution there is going to be a strike over the festive season."
The Christmas party season is the busiest time of the year and to strike at this time could leave party-goers stranded if they miss their last buses and trains home. The taxi drivers are also considering other forms of action, such as a protest outside Calderdale town hall and a lorry-style go-slow round Halifax town centre.
Mr Mahmood said drivers would not make their decision about protest action until they had heard the results of discussions at a working party of the licensing and regulatory panel in November. These discussions will focus on regulations such as drivers' age requirements and the frequency of testing.
The licensing panel has already agreed to speed up the process of renewing licences, and concessions have been made over tinted windows.