South African motorists could be in line for even larger fuel price cuts in July as fuel over-recoveries continue to strengthen.
Current data shows petrol recording an over-recovery of about R2.80 per litre, while diesel is showing even greater gains of between R4.50 and R4.90 per litre.
The potential price reductions are being driven largely by lower international oil prices, which have fallen to around $80 a barrel amid improved market sentiment following a peace agreement between the United States and Iran.
The decline in global oil prices has translated into lower fuel import costs, boosting over-recoveries and raising expectations of another month of relief at the pumps.
However, motorists may not feel the full benefit of these gains. The expiry of government's temporary fuel levy relief is expected to offset a significant portion of the anticipated reductions.
The end of the relief measures will effectively add about R1.50 per litre to the price of petrol and close to R2 per litre to diesel, reducing the overall impact of the over-recoveries.
Despite this, fuel prices are still expected to decrease in July if current market conditions persist, offering some relief to consumers and businesses grappling with the rising cost of living.
Official fuel price adjustments for July will be announced by the Department of Mineral and Petroleum Resources at the end of the month.