Question:

Given below are two statements:
Statement (I): The prices of petrol and diesel in the domestic market have remained unchanged for the past few months.
Statement (II): The crude oil prices in the international market have gone up substantially in the last few months.
In light of the above statements, choose the most appropriate answer from the options given below.

Show Hint

Identify which household object also relies on a pulley-based mechanism.
  • Statement I is the cause and statement II is its effect
  • Statement II is the cause and statement I is its effect
  • Both the statements I and II are independent causes
  • Both the statements I and II are effects of independent causes
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The Correct Option is C

Solution and Explanation

Statement I says domestic petrol and diesel prices have stayed flat, while Statement II says international crude prices have risen a lot. If Statement II were directly causing Statement I, domestic retail prices would normally be expected to rise too, following the global trend, but they haven't moved, which breaks that expected link.
This mismatch suggests the two observations come from separate, independent factors, government price-stabilisation policy on one side and global supply-demand dynamics on the other, rather than one directly causing the other.
So option 3, that both are independent causes, is correct.
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