As reported on Iron-Bru.net last Monday, Plans have been announced to paint double yellow lines on roads close to Glanford Park in a bid to stop supporters causing traffic congestion on matchdays.
But Coun Oldfield wants to take things a step further, feeling that not enough has been done to ease the problem.
He told the Scunthorpe Telegraph: "I welcome the various local authority's attempts to resolve this very dangerous road safety issue which has developed around the stadium, and I reluctantly call upon the Safety Action Group to reduce the capacity limit of Glanford Park to a level based on the current number of car parking spaces available.
"The safe solution clearly lies with Scunthorpe United Football Club to provide local fans with somewhere to park without the risks they are currently subjected to.
"I wish the team well in their first season in Division One and would hope to welcome the forecasted increase in attendance with car parking facilities to match the club's new found status.
"Recent reports that the Lodge Moor and Hilton Avenue estates don't have a problem on matchday have enraged local residents and are wildly inaccurate."
The idea was quickly ridiculed by Conservative MP Coun Don Stewart.
The Iron season ticket holder said: "The Labour group have put forward a proposal which would see Scunthorpe United Football Club go to the wall.
"Coun Oldfield has called for the capacity at the ground to be reduced to around 600 - this is an utter disgrace.
"We now see how Labour would reward the club for a successful season and promotion to League One.
"I for one am hoping the attendances rise following the promotion. The club could just not survive on attendances of 600. Does Coun Oldfield want to shut the club down?
"He wishes them well in Division One - this shows just how much he follows the club as they will be in League One.
"I am sure his statement will not just dismay followers of the club, but the vast majority of people in North Lincolnshire."