Camels and Gas

As oil (and gas) prices rise, those in India are switching to camels instead of driving their cars:

“It’s excellent for the camel population if the price of oil continues to go up because demand for camels will also go up,” says Ilse Köhler-Rollefson of the League for Pastoral Peoples and Endogenous Livestock Development. “Two years ago, a camel cost little more than a goat, which is nothing. The price has since trebled.”

The economics of it then...how does a increase in the price of oil lead to an increase in the price of camels?

1. The price of oil increases.
2. Oil is a complement good for cars.
3. Demand for cars falls, putting downward pressure on car prices.
4. The falling car prices do not offset the rising cost of driving the car.
5. There is an increase in demand for substitute means of transportation, including camels.
6. The price of camels increases.

Hat Tip: Kids Prefer Cheese.