Kenya’s energy regulator has cut retail prices of diesel, petrol and kerosene to reflect lower import costs, in a move likely to temper rising inflation.

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 0.62 shillings to 102.36 Kenyan shillings ($1.15) in the capital Nairobi and that of kerosene by 1.42 shillings per litre to 81.63 shillings.

The price of petrol fell by 4.98 shillings per litre to 111.64 shillings.

The regulator said the cost of importing crude fell in August compared with the previous month.

The government started a monthly review of retail fuel prices in 2010 after they shot upwards, driving up the cost of living.

Kenya’s inflation rose to 8.36 percent in the year to August from 7.67 percent in July.

The price adjustments take effect on Sep. 15 and will stay in place for one month.

(1 US dollar = 88.8000 Kenyan shilling) (Writing by James Macharia; Editing by Mark Potter)