Small firms in Bulgaria are struggling to stay afloat as fuel prices bite, business owners in Sofia say. Profits are falling, wages are frozen, and some firms are close to shutting down.

A pastry workshop in Sofia supplies 30 cafes and restaurants. Its owner isn't raising prices, because orders have already dropped, so instead he's asking clients to order bigger batches to help cover his losses. Fuel costs for his delivery vans have climbed for months, and he doesn't expect them to come down. The ingredients he buys haven't gone up much in price, but some suppliers have added a delivery fee, which has pushed up his costs.

A driving school with 15 cars, some diesel, some petrol, is facing a tough choice: charge more for lessons or cut the hours behind the wheel. Krasimir Georgiev, head of the AKAB driving schools association and owner of a driving school, says learner mistakes push fuel use up to 40% above the manufacturer's norms.

Right now a course includes 31 hours of driving practice. If cuts are needed, that could drop to 20. A category B licence course costs around €1,200.

Georgiev says raising prices when customers are already feeling the pinch risks driving the business under, so cutting hours is the more likely option. The state isn't helping the industry, he says. Price rises in the sector usually start gradually, as firms try to cover their costs — but by the time they do, they may find they've lost their customers.