The local authority said it currently had no power to restrict the number operating as a business, or to regulate the safety or prevent nuisance.
There is currently only one horse-drawn carriage business in the county, in Tenby.
Kate Telford, of Tenby Carriage Rides, said she had not been contacted about the consultation and felt "targeted".
A report by the council's head of legal and democratic services said there had been a horse-drawn carriage operating within the walled town in Tenby for more than 25 years.
It said the same operator provided the service until retirement a few years ago when a new operator took over.
Shortly after, a second new operator moved into the town, which led to complaints about the operation of two services in a confined area, and the health and safety implications this had on pedestrians and other road users, the report said.
Historically the authority has licensed horse-drawn carriages of less than eight seats as hackney carriages, but, the report said, the current operator has a carriage with more than eight seats.
The consultation is looking at whether the council should introduce a licensing regime, with byelaws.
Ms Telford said: "I'm quite shocked about it. We do it to help the town and have people from all over the world coming to us.
"If it's going to cost thousands of pounds, we won't be able to do it."
The consultation runs until 22 September.

The world's largest maker of passenger jets earned $1.70bn (Â£1.1bn) for the July-to-September period, up from $1.36bn a year ago.
Revenue rose by about 9% to $25.85bn, with commercial aircraft deliveries up 7% to 199.
The Chicago-based company also raised its 2015 sales and profits guidance.
Revenue will be $95-97bn, up from the prior estimate of $94.5-96.5bn. Operating cashflow, Boeing's preferred performance measure, may be $9.5bn for the year, up from the $9bn the company estimated earlier in the year.
Boeing's shares rose 2.8% to $142.82 in pre-market trading.
Boeing said deliveries had surged on its backlog of orders. It delivered 126 of its narrow-body, short-haul 737 aircraft in the period, up from 120 a year ago. It made more 737 planes than all other commercial models combined.
Its commercial backlog stands at $426bn, while it has $46.2bn of defence, space and security orders to fulfil.
"By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow," said president and chief executive Dennis Muilenburg.
"Solid operating performance across our commercial and defence businesses during the quarter also supported our continued investment in innovation and our people, and our commitment to return cash to shareholders."

Next time the planet is under threat though the likes of Thor and Captain America could be joined by Spider-Man.
A deal has been agreed between Sony Pictures and Marvel that will see Spidey appear in an as-yet-unspecified film in the Marvel Cinematic Universe.
It's not clear when that'll be, but Marvel is due to release its latest Captain America venture next year.
The deal doesn't mean Sony Pictures will be giving up the film rights to the character though.
After his Marvel debut Sony will then release the next instalment of its own Â£2.63 billion Spider-Man franchise.
The terms of the contract mean we could see some Marvel Cinematic Universe favourites popping up in those films too.
Spider-Man has been part of Marvel's world for more than 50 years and this new deal puts an end to years of speculation as to whether Peter Parker would ever join the other Marvel superheroes on the big screen.
"Spider-Man is one of Marvel's great characters, beloved around the world," said Bob Iger, chairman and CEO of The Walt Disney Company, which owns Marvel Entertainment.
"We're thrilled to work with Sony Pictures to bring the iconic web-slinger into the Marvel Cinematic Universe, which opens up fantastic new opportunities for storytelling and franchise building."
It's not clear who'll play Spider-Man in his first Marvel Cinematic Universe appearance.
In a statement Sony does refer to "the new Spider-Man", which may mean Andrew Garfield, who has played the character in the last two Sony films, is out.
Follow @BBCNewsbeat on Twitter, BBCNewsbeat on Instagram and Radio1Newsbeat on YouTube
Pembrokeshire council is consulting on how to best regulate horse-drawn carriages in the county.
[NEXT_CONCEPT]
Aircraft maker Boeing has reported a 25% rise in quarterly profit, helped by an increase in deliveries of commercial aircraft.
[NEXT_CONCEPT]
In 2012 it took an elite team of superheroes to save earth from an alien army planning to enslave humanity.