INA - LACK OF CONDITIONS FOR DECREASE OF OIL PRICES

ZAGREB, April 14 (Hina) - Contrary to the Croatian Economy Ministry, the Croatian Oil Industry (INA) believes that conditions for a decrease in the price of oil do not exist. The price of oil on the world market today amounts to US$22.9 per barrel, and according to the Croatian National Bank (HNB), today's dollar-kuna exchange rate was 1:8.089. "Therefore, there are no conditions for reducing the price of oil products," INA spokesman Mario Dragun told a news conference when asked to comment on INA's reaction to a statement given by Economy Minister Goranko Fizulic today. Fizulic said he would request a reduction of prices of oil products due to a fall in the price of crude oil on the world market to some US$22-23 per barrel. INA said aggravating circumstances for a possible decrease of prices of oil products include last year's missed income of some 700 million kuna (US$87.5 million), "which was caused by untimely correction of prices." The oil industry is also burdened with high claims, which in early April amounted to 1.9 billion kuna (US$237.5 million). The Economy Ministry in mid-March agreed to a 10 percent increase in the price of oil products, prompted by increased prices of oil on the world market, which reached US$28 per barrel. (hina) jn rml