The statement clearly mentions that the bus fare hike is due to a change in petroleum prices. A logical inference is that the price of petroleum products has increased, which justifies the fare hike (Inference 1 is true).
Inference 2 states that the government increases bus fares every year, but the statement does not suggest this regular pattern. Thus, Inference 2 does not follow.
Conclusion: Thus, only inference 1 follows (Option A)