INCREASE OF PETROL PRICES SHOULD NOT AFFECT OTHER PRICES - SKEGRO

ZAGREB, July 1 (Hina) - Croatian Finance Minister Borislav Skegro on Thursday said the increase of oil products should not affect other prices. Speaking to reporters after today's Government session, Skegro said he did not believe the increase of less than eight per cent of oil products could cause a considerable or visible rise of expenses. Skegro said the increase in prices was the result of a rise in the prices of oil on the world market and an increase of the dollar exchange rate, as well as of the change of excise duties. He reminded that excise taxes have not changed since their introduction in 1995. As regards possible requests by other producers to increase their expenses, Skegro said their requests would have to be in line with the increase of the price of petrol. Since that increase amounts to less than eight per cent, the Finance Minister does not believe this could have a significant impact on the prices of other producers. Asked about the share of excise taxes and the Croatian Oil Industry (INA) in the increase of petrol prices, Economy Minister Nenad Porges said it was excise taxes that accounted most for the increase of petrol prices, but added INA would also have to rationalise its business. (hina) rml