Scott Morrison believes Australians understand why petrol prices are going up but won't say whether there will be help in the budget at the end of the month through a cut in fuel excise.
Some parts of the country are paying well over $2 per litre as a result of global oil prices spiking due to Russia's invasion of Ukraine.
"What are driving fuel prices are things well beyond the shores of Australia," the prime minister told the Nine Network on Sunday.
"I think Australians understand those issues."
Mr Morrison says Australia is working with other countries around the world in terms of releasing fuel reserves to try to alleviate the pressure on fuel prices.
There have been calls for a cut in fuel excise, which amounts to 44 cents for a litre of petrol.
Like the prime minister, Assistant Treasurer Michael Sukkar declined to foreshadow anything that may or may not be in the budget on 29 March.
But he concedes the cost of living is a significant issue.
"There is no doubt the budget will seek to build the recovery, ensure that we keep our foot on the economic accelerator, but will also take into account the fact households are feeling the pressures of cost of living," Mr Sukkar told Sky News' Sunday Agenda program.
Households are also being warned of an official interest rate rise later this year, which would be the first in almost 12 years.
Mr Sukkar was quick to point out that it is the Reserve Bank of Australia that makes these decisions, not the government.
"We will be conveying to the Australian people through the budget and into the election that our economic recovery is not assured," he said.
"We're in good shape but we still need to make wise decisions in a period of time where there is great instability in the world."
Cost of living pressures look set to be a key focus when the country eventually goes to the polls in May.
Labor frontbencher Tanya Plibersek says everything is going up apart from people's wages.
"Everywhere you go, everyone I'm talking to will tell you they haven't had a pay rise in years - they have seen the purchasing power of their pay packet go backwards," she told Sky News.
"This is something Scott Morrison has absolutely failed on."
