Ukrainians should expect gas price hikes, subsidies for poorest citizens

Written by on March 26, 2014 in Europe - Comments Off on Ukrainians should expect gas price hikes, subsidies for poorest citizens

Ukraine will increase household prices for gas by 50 per cent in May, and the utility companies will see a 40 per cent increase as of July, newly-appointed head of Naftogaz Ukraine Andriy Kobolev said on March 26.

The price hikes will be compensated through direct subsidies for the poor, and this mechanism was set up by the Cabinet on March 23, but it is yet to be made public, Kobolev said. He was appointed to the job on the same day.

But even in spite of the price hikes, which have been approved by the government in conjunction with the International Monetary Fund, the Naftogaz budget deficit this year is expected to run up to Hr 80 billion, or 5.6 per cent of gross domestic product. The figure is based on the assumption that the hryvnia rate will balance around 10 to the dollar.

For the full story, please visit The Kyiv Post.

(Photo: jarpur/sxc.hu)

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