The petrol price shot up by 10% as a result of the hike in crude oil prices. The price of petrol before the hike was ₹ 90 per litre. A person travels 2200 km every month and his car gives a mileage of 16 km per litre. By how many km should he reduce his travel if he wants to maintain his expenditure at the previous level?

Correct Option (2)

The initial petrol price was ₹90 per litre. Following a 10% hike in crude oil prices, the new petrol price is calculated as:

• New price = ₹90 + (10/100) × ₹90 = ₹90 + ₹9 = ₹99 per litre.

A person travels 2200 km monthly, and their car provides a mileage of 16 km per litre. The monthly petrol consumption before the hike was:

• Petrol consumed = 2200 km / 16 km/litre = 137.5 litres.

The total monthly expenditure on petrol at the original price was:

• Total expenditure = 137.5 litres × ₹90/litre = ₹12,375.

To maintain the expenditure at the previous level (₹12,375) with the new petrol price of ₹99 per litre, the quantity of petrol that can be purchased is:

• Petrol quantity = ₹12,375 / ₹99/litre = 125 litres.

With this reduced quantity of petrol, the distance that can now be travelled is:

• New distance = 125 litres × 16 km/litre = 2000 km.

Therefore, the reduction in travel distance required to maintain the previous expenditure level is:

• Reduction in distance = Original distance - New distance = 2200 km - 2000 km = 200 km.

Incorrect Options:

Options 1 (180 km), 3 (220 km), and 4 (240 km) are incorrect because the calculated reduction in travel distance, based on the given petrol price hike, mileage, and original travel, is 200 km.