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Sassa on fuel price hike: More people will need income support from government

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The SA Social Security Agency said the current inflation on fuel prices will have an adverse effect on South Africans.

File picture: Ayanda Ndamane/African News Agency (ANA)

THE SA Social Security Agency (Sassa) said the current increase in fuel prices will have an adverse effect on South Africans.

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 will bear the brunt of the latest fuel hike.

“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,” said Letsatsi.

“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.”

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.

“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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