Food and grocery sector welcomes domestic gas reservation legislation as critical step for Australian manufacturing

14 October 2026

The Australian Food and Grocery Council (AFGC) has welcomed the introduction of the Domestic Gas Reservation Bill 2026, saying greater access to affordable and reliable Australian gas is critical to the future competitiveness of food and grocery manufacturing. 

Gas accounts for around 40 per cent of food and grocery manufacturers’ energy needs – powering processes including heating, cooking, drying and pasteurisation. For manufacturers operating on tight margins and competing in domestic and international markets, energy costs directly affect their ability to invest and grow here in Australia. 

AFGC CEO Colm Maguire said the legislation was an important opportunity to address a significant cost pressure facing Australian manufacturers. 

“Australian manufacturers should be able to access Australian gas at internationally competitive prices,” said Mr Maguire. “A domestic gas reservation scheme has the potential to improve supply, put downward pressure on prices and give manufacturers greater confidence to invest in their Australian operations. 

“The test for this legislation will ultimately be whether it delivers more gas into the domestic market and translates any additional supply into lower and more predictable prices for manufacturers,” Mr Maguire added.

“Getting the implementation right will therefore be critical. The scheme needs to provide certainty for gas users and ensure manufacturers can secure competitive long-term contracts.” 

AFGC has consistently advocated for policies that increase domestic gas supply and improve affordability for manufacturers. 

Earlier this year, AFGC welcomed the proposed national reservation policy as a critical step in supporting Australia’s food and grocery manufacturing sector. 

Media Contact: 

media@afgc.org.au