NAIROBI: Kenya's energy regulator said on Monday it had cut retail fuel prices for petrol diesel and kerosene after the cost of crude oil fell marginally on international markets.
Fuel prices have a big effect on Kenya's inflation rate , which fell for a 13th straight month in December to 3.20 percent from 3.25 percent in November, having peaked at 20 percent in late 2011.
The Energy Regulatory Commission (ERC) reduced the maximum price of a litre of super, or premium, petrol by 1.01 shillings to 111.60 shillings ($1.29) in Nairobi.
It cut the price of a litre of diesel by 1.80 shillings to 103.99 shillings, while kerosene fell by 2.58 shillings a litre to 83.86 shillings.
Kenya's economy is highly dependent on diesel for transport, power production and agriculture while kerosene is used in many homes for lighting and cooking.
The price of a barrel of importing Murban crude edged lower by 1.20 percent to $110.75 in November, the statement said.
However the shilling weakened by 0.39 percent in that period to 86 per the dollar, ERC said, offsetting some of the drop in the price of Murban crude as currency depreciation made oil in dollar terms more expensive to import.
The regulator reviews energy prices every month and adjusts them accordingly if required, depending on fluctuations in international energy prices. The prices take effect on January 15 and will be in place for one month.
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