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The State Energy Commission said the rises would affect the price of gas to households and also supplies to heating companies, a cost which will inevitably be passed on to the average Ukrainian who relies heavily on gas for central heating in the home.
"We have to tell people the truth. In these circumstances, we had no other choice than to agree with the IMF on financial support," Azarov said at a televised government meeting.
IMF's demand that Ukraine raise domestic prices, reduce subsidies to support low prices, will be implemented starting August. While this act could hurt the new government, as suggested in the article, its still summer in Ukraine. Right now central heating has yet to start in Ukraine, households won't notice the full affect of this price hike until much later in the year.
Azarov said the government, which is committed to fighting poverty, would widen the list of poorer households eligible for social security payments to partly offset higher gas bills.
This sounds like a back door way to keep the subsidies going to households if the government widens the definition of poor households.
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