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Over the previous year, the strong growth of world oiland oil products prices continued. The average price ofimported oil amounted to 2,716 HRK/t, which is 13.6%above the price of oil imported in 2006. The average priceof processed oil was 11.6 % higher than planned. Over theyear, the price of oil continuously grew, and the impossibilityof compensating the total oil price through oil productson the market within the Rulebook for Determination ofPrices on the Domestic Market, as well as the free importto neighbouring markets, had an adverse effect on thebusiness results of the Refining and Marketing Segment.The Croatian Agency for Obligatory Oil and Oil ProductsReserves for 2007 increased the amount of assignmentobligation for financing the Agency, and the obligation tomaintain reserves with the obligation of keeping reserveswithout compensation was reduced.In 2007, the Refinery and Marketing Segment achievedtotal sales of oil products in the amount of 4.817 milliontonnes, 2.881 million tonnes of which, or 60 %, was soldon the Croatian market, and 1.9036 million tonnes, or40%, on export markets.In 2007, the level of sales on the domestic marketmaintained the 2006 level, and sales to export marketsrecorded growth by 107,363 tons or 5.9 % over 2006. Saleof Euro quality motor fuels also grew by a significant 19%,which is the result of the sales increase of motor fuelsof Euro quality by 82,979 tonnes and diesel fuels of Euroquality by 136,801 tonnes in 2007 over the previous year.Sale of motor fuels on the domestic market continues todecrease, as well as that of gas fuels, and the sale of fueloils is higher due to growing needs of HEP. A decrease ofbitumen sale was also recorded.A remarkable export was achieved by selling liquefiedpetroleum gas, petrol group and gas oil groups.The export of oil products to our most important marketin the region - Bosnia and Herzegovina, continues with atrend of significant growth in 2007 by 12% over the previousyear. During 2007, an increase of exports of certain oilproducts to the Serbian market was recorded, theseproducts including LPG, bitumen and base oils. INA has nopossibility of placing motor gasolines and diesel fuels inthe Serbian market due to the Decree on Prohibition of OilProducts Import passed by the Government of Serbia.Annual report 200743