Kenya has raised retail fuel prices to 98.08 shillings per litre of petrol sold in the capital for the next 30 days, from 95.60 shillings, the Daily Nation reported on Monday.

Motorists in the western city of Kisumu will have to cough up 100.28 shillings per litre while those at the port city of Mombasa will be expected to pay 94.93 shillings.

The government instituted fuel caps in December after Kenyans complained retailers were exploiting them. The limits are based on location of sale, with Kisumu on the shores of Lake Victoria attracting the highest charges due to its distance from the refinery in Mombasa.

Maximum prices are determined every 15th day of the month and are in force until the 14th day of the following month.

Fuel prices have a large bearing on Kenya's rate of inflation as most of the country's 39 million people rely on kerosene for lighting.

Most of its food is also moved around the country by road and in times of drought, electricity producers turn to diesel for thermal generation.

Brent crude, the benchmark in Europe, Africa and the Middle East, for April was up 91 cents to $101.85 at 1113GMT.