Middle East Update: National Cabinet Meeting

30 March 2026

Background

National Cabinet has convened a second emergency meeting to coordinate Australia’s approach to managing fuel supply risks. While national fuel supply remains stable at present, diesel availability is emerging as a key concern for freight reliant sectors, including food and grocery manufacturing.

What we are seeing

• National fuel supply is currently stable, with fuel arriving as expected and stocks at normal levels.  
• The reduction in the heavy vehicle charge aims to provide direct cost relief for freight dependent food and grocery manufacturers, lowering diesel costs for heavy vehicle operators.  
• Supply chain pressure remains a live risk. Members reliant on diesel powered logistics should continue to monitor developments closely.  
• Diesel supply pressure remains the key risk, with potential flow on impacts for freight, agriculture, food manufacturing, fertiliser, plastics and construction, particularly for small and regional operators.
• Resin and packaging remain tight with government seeking to understand more around potential solutions.
• Government’s four stage National Fuel Security Plan indicates further intervention is available if conditions worsen, Australia is currently at Stage 2. AFGC is working to better understand what the stages may involve.

Member input needed: Supply chain pulse check

To help AFGC track how conditions are evolving, we are running regular pulse checks with members.

If you have not already completed this survey, please take two minutes to respond (five questions). The survey will be reissued periodically to track changes over time, and responses inform what AFGC escalates with government.

AFGC action

• Continuing targeted engagement with government to seek clarity, advocate early and support proportionate responses, while maintaining confidence across supply chains and the community.
• Monitoring impacts across the sector and sharing updates with members as the situation evolves.

Who you can talk to

For questions and emerging risks, please contact Lee Dittmar, Manager, Retail Supply Chain.

We will continue to keep you updated as the situation evolves.

Scott McGrath
Director – Stakeholders, Engagement & Policy