Kenya cuts retail fuel prices for second month in a row

Kenya's energy regulator reduced retail fuel prices for petrol, diesel and kerosene for the second straight month on Thursday, a welcome respite for policymakers with inflation lying outside the government's preferred upper limit.

Fuel station

   Fuel prices have a significant impact on inflation in east Africa's biggest economy, where the economy depends heavily for 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 super petrol in Nairobi by 3.40 shillings per litre to 108.87, while it lowered the price of diesel by 1.22 shillings per litre to 103.25.
   The price of Kerosene will fall by 2.22 shillings per litre to 82.79.
   Kenyan inflation slowed to 7.76 percent in the year to October from 8.29 percent a month earlier, but still hovers above the government's preferred band of 2.5-7.5 percent.
   The changes take effect on Nov. 15 and will be in force for a month. The regulator reviews domestic energy prices every month, with adjustments made depending on fluctuations in international energy prices.