Cause–effect classification in fuel pricing — with domestic petrol/diesel prices unchanged for months while international crude oil prices have risen substantially, identify the most appropriate cause–effect relationship between the statements

Given data

• I: Domestic retail fuel prices have remained unchanged for months.
• II: International crude oil prices have risen substantially in recent months.

Concept/Approach

International crude prices are driven by global supply–demand/geopolitics. Domestic retail stability is typically driven by national policy/tax buffers. The two outcomes arise from different causal mechanisms; one is not a direct effect of the other.

Step-by-step classification1) II does not cause I: a rise in crude would normally push domestic prices up, not keep them unchanged; price freezes/absorption policies explain I.2) I does not cause II: domestic retail pricing cannot drive international crude benchmarks.3) Each statement is best viewed as an effect of its own independent cause ⇒ Option D.

Verification/Alternative

Consider plausible independent causes: (a) OPEC cuts/global demand ↑ for II; (b) government-administered pricing/tax smoothing for I.

Common pitfalls

• Assuming a direct causal chain between unrelated macro (global) and micro (domestic policy) phenomena.

Final AnswerBoth the statements I and II are effects of independent causes.