Domestic gas reservation scheme a critical step in securing Australia’s food and grocery manufacturing sector

22 December 2025

The Australian Food and Grocery Council (AFGC) welcomes the Federal Government’s announcement of a national gas reservation policy aimed at shoring up domestic supply and putting downward pressure on gas prices for Australian users.

Access to competitively priced domestic gas is essential for food manufacturing, where gas remains a critical input for processing, heating and as a feedstock across a wide range of essential products consumed by Australian households every day.

AFGC acknowledges the leadership of Ministers Tim Ayres, Chris Bowen, and Madeleine King in this positive step towards securing affordable and reliable energy for Australia’s food and grocery manufacturers.

“For many food and grocery manufacturers, gas remains an essential input,” said CEO of the AFGC, Colm Maguire. “A well-designed domestic gas reservation scheme that increases supply, supports long-term contracts and puts downward pressure on prices is critical to sustaining investment, protecting jobs and maintaining food security.”

“Combining today’s announcement with the recently announced $5bn Net Zero Fund to support energy transition for food and grocery manufacturers, it is clear there is strong momentum for the sector as we head into 2026,” said Mr Maguire. “For some time now, we have played a vital role in highlighting to government the size of the challenge in energy transition for our sector. Ministers Ayres, Bowen and King have all clearly heard this and evidently remain eager to work with the industry in securing affordable and reliable energy.”

The AFGC looks forward to working constructively with the Government during consultation in 2026 to ensure the final design of the domestic gas reservation scheme supports a competitive, sustainable and resilient food and grocery manufacturing sector.

Media Contact:

Ingrid Cruz

media@afgc.org.au