Kenya raises fuel prices as Middle East conflict lifts import costs

NAIROBI, Oct 15 (Reuters) — Kenya raised the maximum retail prices of petrol and diesel on Wednesday, the energy regulator said, citing higher import costs linked to the conflict in the Middle East. Kenya hiked petrol prices by 6% and diesel prices by 4.5%, with the East African nation relying on the Middle East region for nearly all of its fuel supplies A litre of diesel will cost 227.76 Kenyan shillings ($1.76) in the capital city of Nairobi, from 217.86 shillings, while kerosene will rise to 219.87 shillings from 191.38 shillings between October 15 and November 14, when new prices will be announced. The energy regulator said the government extended a reduction in value-added tax on fuel to 8% from 16% until January 14. Fuel prices affect multiple sectors including transport, agriculture and construction. ($1 = 129.6000 Kenyan shillings) (Reporting by Edwin Okoth and VIncent Mumo Nzilani; Writing by George Obulutsa; Editing by Sherry Jacob-Phillips) ((george.obulutsa@thomsonreuters.com; Reuters Messaging: george.obulutsa.thomsonreuters.com@reuters.net)