Oil prices blamed for failure of Groceries Order abolition

Minister for Enterprise Micheál Martin has blamed rising oil prices for the fact that the abolition of the Groceries Order has failed to reduce food prices.

The order had prevented supermarkets from selling certain goods at below cost-price and the Government claimed that abolishing it would lead to cheaper food for consumers.

However, this has failed to materialise.

Speaking in Galway today, Mr Martin claimed this was because of the effect of rising international oil prices.

"The greatest single factor in the external economy over the last 12 to 15 months has been the increase in the price of oil, which unfortunately feeds into all sectors," he said.

"We will be calling on the supermarkets and the retail industry to do everything they can to bring prices down and the Competition Authority will be monitoring the industry to make sure that true competition prevails."