Aims. We present the spectral analysis of a large set of XMM-Newton observations of EXO 0748-676, a bright dipping low-mass X-ray binary. In particular, we focus on the dipping phenomenon as a result of changes in the properties of the ionised gas close to the source.Methods. We analysed the high-resolution spectra collected with the reflection grating spectrometer on board XMM-Newton. We studied dipping and persistent spectra separately. We used the Epic data to constrain the broad-band continuum. We explored two simple geometrical scenarios for which we derived physical quantities of the absorbing material like the density, size, and mass.Results. We find that the continuum is absorbed by a neutral gas, and by both a collisionally (temper...