Kenya's energy regulator said it was cutting the retail prices of diesel, petrol and kerosene to reflect lower import costs, in a move likely to ease inflationary pressures. Fuel prices have a big effect on inflation in the east African nation, which relies heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for cooking and lighting.
The Energy Regulatory Commission cut the maximum retail price on a litre of diesel by 1.69 shillings to 100.67 shillings (1.1292 US dollar) in the capital Nairobi and that of kerosene by 0.75 shillings per litre to 80.88 shillings. The price of petrol fell by 0.75 shillings per litre to 110.89 shillings. The regulator said the cost of importing crude fell in September compared with the previous month. The government started a monthly review of retail fuel prices in 2010 after they shot up, driving up the cost of living. Price inflation in Kenya fell to 6.60 percent in the year to September from 8.36 percent in the previous month. The price adjustments take effect on Oct. 15 and will stay in place for one month.