Prime Minister Anthony Albanese says his government cannot do everything he “would like to do” when questioned on extending the fuel excise amid cost-of-living pressures.

Mr Albanese said his government has inherent a trillion dollars of debt.

“Our balance sheets are worse than state and territory governments,” he said.

“The former government put in place a time-limited change to the petrol payments – that will conclude … we can’t do everything we would like to do.”