Economists hopeful following drop in fuel price

Economists are hoping that a drop in the oil price will lead to more decreases in fuel prices next year.

Economists are hoping that a drop in the oil price will lead to more decreases in fuel prices next year. Picture: EWN.

JOHANNESBURG - Economists are hoping that a drop in the oil price will lead to more decreases in fuel prices next year.

The energy department announced that petrol will cost 69 cents a litre less from Wednesday while diesel will be 53 cents cheaper.

It's hoped that this will help grow the economy and keep interest rates low.

The Automobile Association's Marius Luyt said, "People can travel further and some have extra spending money."

Investment solutions Chris Hart said, "If the rand can hold, we're going to see even further cuts in the new year and that will be important for economic growth and it helps to bring the inflation rate down."

The drop in the fuel price was widely welcomed on Friday.

Experts are predicting a positive economic knock-on effect.