Carbon permits will raise fuel prices for transport and heating, and households will pay more, says Tsvetomir Nikolov, an analyst in the geoeconomics programme at the Centre for the Study of Democracy (CSD). He spoke on the show "Bulgaria, Europe and the World in Focus", hosted by Tsonya Sabcheva, on Radio FOCUS.

He said that delaying the EU carbon pricing system for transport and household fuels could slow investment in energy efficiency and alternative technologies.

Nikolov said fuel taxes in Bulgaria are among the lowest in the EU. So when fuel prices rise later, Bulgaria feels the effect more sharply.

The main problem, the analyst said, is that the economy relies on fossil fuels. As a result, Bulgaria will stay badly exposed to any price shock around the world.

Nikolov believes carbon prices bring in not only revenue but also money to help vulnerable households and pay for energy upgrades. He called it a political and fiscal tool. In other words, it lets governments direct support to where it is needed.

The analyst also criticised the government. He said it is not doing enough to let state-run companies registered in Bulgaria sell at lower prices and still make a fair profit. Nikolov said this is possible without extra measures, without any cost to the budget and without risk to the companies' profits.