The Energy Regulatory Commission (ERC) has cut retail fuel prices after the cost of crude oil fell in international markets, trimming the maximum price of a litre of super petrol 1.4 percent to Sh 113.68 in Nairobi.
Fuel prices have a big effect on the rate of inflation, which fell to 4.14 percent in October from 5.32 percent the previous month, having peaked at 20 percent late last year.
ERC said on Wednesday the price of a barrel of importing Murban crude fell 2 percent to $113.2 during the month, offsetting a 0.6 percent depreciation of the shilling against the dollar.
The ERC cut the price of a litre of diesel by Sh0.26 to Sh105.85. The price of a litre of kerosene was lowered to Sh84.87, down 1.3 percent.
Kenya introduced a law allowing the energy regulator to set the maximum retail price of fuel in 2010, after prices soared, hitting consumers hard. Oil marketers say the new model has led to losses.
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The ERC raised fuel prices during its September and October reviews, citing volatile prices of crude.
-Reuters
