Speaking on ABC's Insiders, shadow treasurer Jim Chalmers said rising living pressures have been occurring well before the Ukraine crisis which has recently caused oil prices to soar.

Dr Chalmers claimed the Coalition was inept at addressing stagnating wages and was not considering price relief in other aspects of the economy such as childcare and health.

The alternative treasurer to Josh Frydenberg did concede Labor would not oppose a potential drop in the fuel excise tax at the upcoming federal budget on Tuesday.

It has been widely speculated more than $4 billion could be set aside as a cost of living package and may include cash handouts for pensioners and low income earners.

A cut to the fuel excise tax is also touted after strong public pressure while petrol prices remain above $2 a litre due to jittery commodity markets induced by Russian sanctions.

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"Petrol is a big part of the story, as everybody knows, but it's not the only part," Dr Chalmers said.

"We think that there is a place for cost delivering relief in the childcare system. We think there's a place for cost of living relief when it comes to power bills and our policies go to those solutions."

Dr Chalmers noted more needs to be done to lift wages, particularly in the aged care sector.

He said Labor would implement wage increases for critical sectors recommended by the Fair Work Commission.

"When it comes to aged care they need and deserve a decent pay rise to do such an important job."

Dr Chalmers also said Labor would do more to address regional security in light of the draft security agreement between China and the Solomon Islands.

He flagged this deal has occurred because aid to the Pacific nation had dropped by more than 20 per cent since 2018.

"We need to take a broader look," Dr Chalmers said.

"We need to do better for our Pacific friends and neighbours."