Updates with details from paragraph 2 onwards

March 20 (Reuters) - Australia's competition regulator said on Friday it has granted urgent interim authorisation to major fuel suppliers to coordinate efforts to manage the impact of the Middle East conflict on the country's fuel supply chain.

The Australian Competition and Consumer Commission (ACCC) said the interim authorisation permits companies to coordinate fuel supply to ease shortages without breaching competition laws.

The authorisation has been granted to members of the Australian Institute of Petroleum, which includes energy retailers such as Viva Energy VEA.AX and Ampol ALD.AX.

The regulator, however, said it does not permit fuel suppliers to share information on pricing or reach agreements on prices.

"We have urgently assessed and granted this interim authorisation, received late Wednesday, because we recognise the impact of the current situation on consumers, businesses, and farmers," ACCC chair Gina Cass-Gottlieb said.

"Allowing the major fuel companies to coordinate raises real risk of harm to competition. We are granting the urgent interim authorisation with conditions to mitigate this risk."

ACCC has observed petrol and diesel prices continuing to rise in the past week, although less sharply than at the start of the conflict three weeks ago.

Consumers continue to experience shortages in some locations as demand increased, the regulator added.

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)

((Shivangi.Lahiri@thomsonreuters.com;))