Kenya cuts retail fuel prices after crude falls

NAIROBI (Reuters) - Kenya's energy regulator reduced retail fuel prices for petrol, diesel and kerosene on Monday, after prices of crude oil fell in global markets and the Kenyan shilling firmed slightly against the U.S. dollar. Fuel prices have a big impact on the rate of inflation in the east African economy. The rate jumped to 8.29 percent in September from 6.67 percent a month earlier. The economy depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking. The Energy Regulatory Commission (ERC) cut the maximum price of a litre of super petrol in Nairobi by 1.16 shillings to 112.27 shillings, while it lowered the price of diesel by 1.08 shillings to 104.47 shillings per litre. The price of kerosene will drop by 0.55 shillings to 81.01 shillings, the commission said. The regulator reviews domestic energy prices every month, with adjustments made depending on fluctuations in international energy prices. The new prices will take effect on October 15, and will be in force for a month.