Croatian public institutions will obtain natural gas at a preferred price of €41 per megawatt hour, Economy Minister Davor Filipovic said on Thursday, adding there is no risk of gas and petroleum product shortages in Croatia.

“Croatian gas has been secured for all hospitals, schools, and kindergartens at a price of €41 per megawatt hour, the government made a decision to that effect yesterday,” the minister said, recalling that the government in mid-September instructed INA to increase gas production by 10 percent.

The government decided at the time that all gas to be produced by INA would have to be sold to the HEP power provider, however, it changed its decision on Wednesday because INA has fixed gas sale contracts with some of its buyers.

Noting that those contracts could not be unilaterally terminated as it would mean that those clients would sue INA and INA would in turn sue the state, Filipovic said that as soon as the contracts expired, INA would have the obligation to supply all of its gas to HEP.

He reiterated that the government’s decision on favourable gas prices would cover 120,000 citizens and that distributors with insufficient gas supplies would be able to buy gas from HEP as well, which, he said, would make it possible for the price of gas to not go up for anyone in Croatia until 31 March.

Filipovic said that he held talks with representatives of the Petrol distributor of oil products yesterday and that today he met with representatives of INA while tomorrow he would meet with small distributors of petroleum products.

The talks with INA and Petrol focused on the current situation regarding petrol and diesel prices, he said, noting that the representatives of the oil industry were aware that those prices were very high, so they discussed ways of how to proceed.

Oil industry officials are not glad about the state capping prices of oil products but it is doing so to help citizens and the business sector, said the minister.

“It is a fact that OPEC has decided to reduce the production of crude oil, which has lately resulted in high prices of both petrol and diesel, and the situation ahead is uncertain,” he said, adding that one should see to what extent the oil industry could endure certain measures.

Filipovic stressed that the security of oil supply in Croatia was certain.

As for the price of gas for the hospitality and similar sectors, Filipovic that a solution at the EU level will be made soon, adding he was satisfied that in recent days gas prices on global exchanges have been going down.