Prime Minister Ivo Sanader said his cabinet insisted that INA should not change prices on Monday (12 September).
Last time INA increased prices on 29 August. According to the company rules, INA may change prices of its products every 14 days.
The premier admitted that prices of petroleum products would have to be changed due to trends on global and Mediterranean oil markets.
He, however, vowed to intervene in case the price of unleaded Eurosuper 95 petrol exceeds eight kuna per litre. This type of petrol is currently sold at 7.98 kuna per litre.
Sanader went on to say that it was likely that trends on global markets would not allow his government to maintain this price for a longer period. In this context he said that his cabinet would find ways to alleviate blows to the living standards of Croatians.
Sanader cited the introduction of fluctuating excise taxes as a possibility.
Finance Minister Ivan Suker explained that the government, which is a majority owner of INA, could insist that the company reallocate profits from the modernisation of its refineries for other purposes so as to help overcome the shocks from the global market. Suker does not believe that this shock could be long-term.
The government advised citizens to use public transport whenever possible.
Defending their policy in creation of petroleum product prices, the premier and his cabinet said that Croatia was a Mediterranean country with the lowest rise in prices of petroleum products.
Since January this year, the price of unleaded Eurosuper 95 petrol has increased by over 100 percent while in Croatia it has risen by 18 percent, Economy Minister Branko Vukelic said.