Roadworks are said to be causing huge delays for motorists travelling between Stanground and Whittlesey.
Drivers said a journey normally taking 10 minutes was instead yesterday (Monday) taking closer to an hour due to a temporary traffic lights system in place near the Park Farm roundabout.
Peterborough City Council said the works are being carried out by Persimmon Homes which is building thousands of homes at the nearby Cardea development.
However, it later admitted this was a mistake.
A council spokesman said: “One set is between the fire station roundabout and the Aldi roundabout using two-way traffic signals between 9.30am and 3.30pm.
“We have had reports of drivers blocking the roundabout and exacerbating the congestion. These are section 278 works being undertaken by C3 Construction on behalf of the developer Countryside.
“The second set are at the junction of Milk and Water Drove using multi-way traffic signals again between 9.30am and 3.30pm. These commenced yesterday and are being undertaken by Skanska for Peterborough Highway Services. It looks to be the second set that are causing the bigger issue and this is being reviewed on site.”
He later added that officers had visited the site this morning and seen the heavy congestion.
He said: “The traffic lights are operating under manual control and traffic queues are considerably reduced from earlier and also yesterday.
“The situation remains under review with regards to queuing and also the working hours.
“The traffic management should be off by 3.30pm and consideration is being given to delaying the start times on future days beyond 9.30am.”