Cost of petroleum products has been increased almost 15% in the last few…
2016
Cost of petroleum products has been increased almost 15% in the last few months. Which of the following may be the possible cause of the effect mentioned above?
- A.
The cost of vegetables has been increased by more than 25%.
- B.
Union of truck owners has decided to increase carriage about 30%.
- C.
In the last couple of weeks, the cost of crude oil has increased in the international market.
- D.
People have decided to protest against the government’s inertia towards the cost of commodities.
Attempted by 37 students.
Show answer & explanation
Correct answer: C
Main cause: Increase in international crude oil prices. Why this raises domestic petroleum prices: Crude oil is the primary raw material for petrol and diesel; higher crude prices directly raise refinery feedstock costs.