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Sassa: petrol price increases will have an adverse effect

Motorists will face large fuel price hikes on Wednesday 6 July 2022, as the petrol levy cut falls from R1.50 a litre to 75c. Petrol prices will be hiked by R2.37 (93) and R2.57 (95) a litre, while diesel prices will rise by R2.31 (0.05% sulphur) and R2.30 (0.005% sulphur) a litre, the Department of Mineral Resources and Energy announced. Photographer Ayanda Ndamane/ AFrican News Agency(ANA)

Motorists will face large fuel price hikes on Wednesday 6 July 2022, as the petrol levy cut falls from R1.50 a litre to 75c. Petrol prices will be hiked by R2.37 (93) and R2.57 (95) a litre, while diesel prices will rise by R2.31 (0.05% sulphur) and R2.30 (0.005% sulphur) a litre, the Department of Mineral Resources and Energy announced. Photographer Ayanda Ndamane/ AFrican News Agency(ANA)

Published Jul 6, 2022

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Cape Town - The South African Social Security Agency (Sassa) said the current inflation in fuel prices would have an adverse effect on South Africans.

On Wednesday, the price of petrol is set to increase by R2.37 cents a litre for 93 octane, and 95 octane will rise by R2,57 cents a litre. Diesel is going up by between R2,30 and R2,31 cents a litre.

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Sassa spokesperson Paseka Letsatsi said it is the department’s mandate to administer and pay social grants to qualifying people, small businesses and those less fortunate who would bear the brunt of the latest fuel increase.

“Sassa’s mandate is to administer and pay social grants to qualifying people.

“The value and qualifying criteria for social grants are determined by the Minister of Social Development with the concurrence of the Minister of Finance to ensure that income support policy and the fiscal capability of the state are balanced.

“The petrol price increases will have an adverse effect on all South Africans as well as South African business.

“The poor, micro and small businesses are likely to be the worst affected. This may result in more people either requiring income support from government or relying on those who do have access.

“Fuel price increases also result in inflationary increases to other consumer goods, which ultimately further decreases the already limited consumption ability of the poor and particularly the grant recipient,” Letsatsi said.

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He said Sassa would continue its awareness of financial literacy and encouragement to use grants to improve their grants as a means to improve their economic conditions.

The agency continues to provide the Covid-19 Social Relief of Distress (SRD) grant of R350.

“This special grant was introduced to target particularly those citizens of working age who are not accommodated in the social assistance safety net.

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“It is also of importance to note that a rapid assessment done on the efficacy of the special Covid-19 SRD grant did, in fact, address the need that it was intended to address, and the vast majority of the recipients of this grant spent the money on food,” Letsatsi said.

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