Economy Minister Branko Vukelic said the law foresaw mandatory oil reserves for 90 days of the average consumption, based on last year's figures.
The reserves would go up gradually, according to the established annual pace, Vukelic said adding that the amount of oil sufficient for a 90-day consumption would have to be reached by 2012.
The minister said that the oil price already includes the financial part for mandatory reserves, adding that there would be no increase in oil prices.
Oil and oil products' price would be established in accordance with market conditions, he said, adding that the Government would be able to set the highest price for a certain oil product so as to protect the consumers. The Government would be able to do that for the period of 90 days.
Prices of oil and petroleum products would not go up because of the increase of mandatory oil reservers would not cause, Vukelic said, dismissing the claims by Slavko Linic of the Social Democratic Party, who said citizens would pay the expenses of the increase of mandatory oil reserves.
Linic also accused the Croatian oil company INA of being irresponsible, stressing that the company was not investing in development.
Linic said that deadlines for the modernisation of INA should be regulated by the law.
Vukelic said that under the regulation that the Government recently adopted, by 2009 Croatia would be free of petroleum of poor quality.