Statement: “The Government will review the present policy of diesel pricing in view of further spurts in international oil prices.” Conclusions: I. The Government will increase the price of diesel after the imminent spurt in international oil prices. II. The Government will not increase the price of diesel to maintain a proper balance between expenditure and growth rate. Which conclusion logically follows?

Introduction / Context:The statement merely says the Government will review the current diesel price policy due to possible further spikes in international crude prices. “Review” means reassess or reconsider; it does not, by itself, state the outcome (increase, decrease, freeze, subsidy reallocation, tax tweaking, or formula change).

Given Data / Assumptions:

• Input: An intention to review policy under changing global conditions.
• No declared decision regarding the direction of price change.
• No mention of fiscal balance targets or growth trade-offs in the statement.

Concept / Approach:In statement–conclusion questions, a conclusion “follows” only if it is a necessary logical consequence of the statement. A plan to review does not imply a predetermined outcome. Either raising, holding, or altering the pricing mechanism is still open.

Step-by-Step Solution:

Verification / Alternative check:Policy reviews can result in multiple directions (indexation, bands, subsidies, duties). Without explicit direction, asserting a specific outcome is speculative.

Why Other Options Are Wrong:

Common Pitfalls:Confusing “review” with “increase.”

Final Answer:If neither Conclusion I nor II follows.