Fuel Security Crucial for Construction Materials Supply

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Industry Calls for Essential Service Status

Cement Concrete & Aggregates Australia (CCAA) is urging the Australian Federal Government to prioritise the construction materials sector under Stage 3 of the National Fuel Security Plan as of 23rd April 2026. This move is crucial to prevent disruptions in housing and infrastructure projects.

National Cabinet discussions on fuel security underscore the sector’s significance, with the industry contributing over £20 billion to the GDP and supporting more than 112,000 jobs nationwide. The CCAA highlights the risk that without fuel prioritisation, construction material movement could halt, affecting project progress.

Oxford Economics analysis reveals that the cement, concrete, and aggregates industry is vital to Australia’s $175 billion construction sector and $242 billion public infrastructure pipeline. Michael Kilgariff, CCAA CEO, stressed the industry’s foundational role, saying, “The heavy construction materials sector is the first link in Australia’s construction supply chain.”

Sector’s Fuel Dependency

CCAA has consistently advocated for formal recognition as an essential service under fuel prioritisation frameworks. Diesel is critical across quarrying, manufacturing, and freight operations. Without it, the entire supply chain faces severe disruptions.

Michael Kilgariff reiterated the urgency, noting, “When fuel supply tightens, construction materials stop moving, and when materials don’t move, projects don’t proceed.” The impact is already being felt with rising costs and potential supply risks if disruptions continue.

The CCAA continues to engage with governments, participating in roundtables across Australia, to secure this critical recognition and ensure the continuity of national projects. As National Cabinet convenes to focus on fuel security and contingency planning, the industry is hopeful for a positive outcome.

Amid ongoing global supply disruptions, the call for priority status becomes even more pressing. CCAA stresses that prioritising the sector is not discretionary, as it supports every road, bridge, home, and energy project in the country.

Oxford Economics highlights the economic importance of the sector, with the industry underpinning construction projects worth billions. The industry warns that without formal recognition in fuel security settings, the economic activity linked to construction could face immediate risks. CCAA has previously highlighted the need for explicit recognition within critical services frameworks to provide certainty during periods of disruption.

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Last updated: 29 June 2026, 12:21 pm

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Melbourne Insider Newsroom
Melbourne Insider Newsroomhttp://www.melbourne-Insider.au
Melbourne Insider Newsroom covers local news, events, food, hospitality and city life, keeping readers informed about what’s happening across Melbourne and the Australian stories that matter to our city.
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