HUNDREDS of small bush pubs could close as a result of soaring government costs and cheap discount liquor outlets.

Publicans in rural Victoria say they are being made to pay for more police in Melbourne's CBD through higher liquor licence fees.

And they claim making a buck is even harder because supermarkets are selling alcohol below cost.

Merino Hotel and Heritage Cinema publican Ian Whalley said bush pubs faced real problems.

"I can see a time in the not-so-distant future when the bush pub will be a thing of the past," Mr Whalley said.

He has called on the government to review all fees and charges imposed on rural hotels and a reduction in the costs of running a pub.

Mr Whalley said his liquor licence fees had leapt from $900 last year to $2350 this year.

Member for Lowan Hugh Delahunty said rising licence fees "cooked the goose" for many publicans in his region.

Mr Delahunty estimated 50 businesses in his electorate were under serious financial pressure, with at least 15 up for sale.

Australian Hoteliers Association Victoria general manager Paddy O'Sullivan said bush pubs were important community hubs.

"Increased licensing fees, and many other costs, are putting significant pressure on hotels," Mr O'Sullivan said.

"We have to stress to government that bush pubs are valuable community assets and they need to be regarded as such and preserved."

He said another big problem threatening survival of bush pubs was heavily discounted packaged liquor offered by supermarket chains at below cost prices.

Natimuk Hotel publican and AHA councillor John Strudwick said business margins were "very tight", due to drought, poor crop prices, a fall in tourism and had been made significantly worse by the increase in liquor licensing fees.

A spokeswoman for Consumer Affairs minister Tony Robinson said the fees were based on research that identified alcohol-related crime and violence was a problem across Victoria.

She said of 22 venues with the highest rate of serious offences, 11 were in regional Victoria.