Dramatic plunge in global oil prices brings good news

South African motorists are in line for a massive sigh of relief at the pumps next month.

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A dramatic plunge in global oil prices alongside a surging local currency is set to drive fuel prices down significantly in July - comfortably absorbing the total expiration of the government's multi-billion rand fuel levy relief scheme.

Mid-month data from the Central Energy Fund (CEF) shows massive over-recoveries across the board for petrol, diesel, and illuminating paraffin.

While the National Treasury is fully terminating its temporary fuel tax holiday on 1 July - clawing back R1,50 per litre for petrol and R1,96 per litre for diesel - the international data remains so overwhelmingly positive that motorists will still come out ahead.

Before accounting for the tax reintroduction, mid-month over-recoveries sat at a staggering R2,57 to R2,60 per litre for petrol, and well over R4,20 per litre for diesel.

Petrol 93 - projected R1,10 decrease
Petrol 95 - projected R1,07 decrease
Diesel 0,05% - projected R2,32 decrease
Diesel 0.005% - projected R2,61 decrease