In order to save money, some of Company X's manufacturing plants converted from oil fuel to natural gas last year, when the cost of oil was more than the cost of natural gas.

Ok , we will convert our plants or factories from oil to gas and save money. So far so good

Because of a sudden, unexpected shortage, however, natural gas now costs more than oil, the price of which has fallen steeply over the past year.

Of course we are lucky and our plan from oil to gas went to hell


The cost of conversion back to oil would more than negate any cost savings in fuel. So Company X's fuel costs this year will be significantly higher than they were last year.

Can we come back ?' no too many costs or reconversion back. As a result, the products of company X will cost more. Gas costs more > final products will cost more


(A) Company X does not have money set aside for the increased costs of fuel.

if they have saving into their bank account....does not matter

(B) The increase in the cost of fuel cannot be offset by reductions in other operating expenses.

The compensation is irrelevant

(C) The price of natural gas will never again fall below that of oil.

Factual information

(D) The cost of fuel needed by those of Company X's plants that converted to natural gas is not less than the cost of fuel needed by those plants still using oil.

The costs must be equal and we might make a comparison. If they are different we cannot do that. We are on a different level with different budgets. CORRECT

(E) The price of oil will not experience a sudden and steep increase.

Factual

Hope this helps