UPSC Prelims Practice Questions — India’s crude import bill up 41% in July on West Asia crisis

Q1. As per the provisional data released by the Petroleum Planning and Analysis Cell, India's crude oil import volume in July 2026 was closest to how many million tonnes?

  • A. 18.9 million tonnes
  • B. 21.4 million tonnes
  • C. 24.7 million tonnes
  • D. 27.3 million tonnes

Q2. Consider the following statements regarding India's oil and gas import data for July 2026 as compared with the corresponding earlier period: 1. The crude oil import bill rose by over 41% year-on-year to $13.7 billion, while the imported volume rose by about 13%. 2. India's crude oil basket averaged $82.04 per barrel during the month, against $70.95 per barrel in the same month a year earlier. 3. For the April-July period of the financial year, the cumulative crude oil import bill rose by 40.3% while the net oil and gas import bill rose by 56.5%. Which of the statements given above is/are correct?

  1. The crude oil import bill rose by over 41% year-on-year to $13.7 billion, while the imported volume rose by about 13%.
  2. India's crude oil basket averaged $82.04 per barrel during the month, against $70.95 per barrel in the same month a year earlier.
  3. For the April-July period of the financial year, the cumulative crude oil import bill rose by 40.3% while the net oil and gas import bill rose by 56.5%.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. The annual publication 'Energy Statistics India', which records India's crude oil import dependence among other energy indicators, is brought out by which one of the following?

  • A. The Central Electricity Authority under the Ministry of Power
  • B. The Directorate General of Hydrocarbons under the Ministry of Petroleum and Natural Gas
  • C. The National Statistical Office under the Ministry of Statistics and Programme Implementation
  • D. The Petroleum Planning and Analysis Cell under the Ministry of Petroleum and Natural Gas

Q4. Which one of the following statements regarding India's officially reported crude oil import dependence is correct?

  • A. It has declined in every single year since 2014-15 without exception, on the strength of rising domestic crude output.
  • B. It is computed exclusively from the volume of imported petroleum products, crude oil being entirely excluded from the ratio.
  • C. It stood at 88.2 per cent in the first half of 2024-25, having come down from 87.6 per cent in the corresponding half of 2023-24.
  • D. It has risen from roughly 77 per cent about a decade ago to nearly 88 per cent in the recent reporting years.

Q5. Consider the following statements about the Strait of Hormuz: 1. All Gulf oil exporters without exception possess pipeline routes that entirely bypass the strait, rendering any disruption there inconsequential for their crude exports. 2. The strait separates Iran on its northern side from Oman's Musandam exclave on its southern side, and narrows to about 33 km at its narrowest point. 3. Unlike the Strait of Malacca, which has geographically proximate alternatives, the Strait of Hormuz is the sole maritime gateway to the Persian Gulf. Which of the statements given above is/are correct?

  1. All Gulf oil exporters without exception possess pipeline routes that entirely bypass the strait, rendering any disruption there inconsequential for their crude exports.
  2. The strait separates Iran on its northern side from Oman's Musandam exclave on its southern side, and narrows to about 33 km at its narrowest point.
  3. Unlike the Strait of Malacca, which has geographically proximate alternatives, the Strait of Hormuz is the sole maritime gateway to the Persian Gulf.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. The frequently cited figure of about 20.3 million barrels per day in connection with the Strait of Hormuz denotes which one of the following?

  • A. The combined daily crude output of all OPEC members without exception, every one of whom ships solely via this waterway
  • B. The installed daily crude refining capacity of the Persian Gulf states lying to the west of the waterway
  • C. Petroleum liquids, comprising crude oil and refined products, moving through the waterway each day — roughly a quarter of world maritime oil trade
  • D. The daily seaborne crude exports of Saudi Arabia despatched via the Red Sea and the Bab el-Mandeb strait

Q7. In the context of India's crude oil sourcing since 2022, the 'discount' on Russian crude refers to which one of the following?

  • A. A rebate on freight and insurance charges extended by shipping firms carrying Russian cargoes to Indian ports
  • B. The margin by which Russian grades are sold to Indian refiners below the prevailing international benchmark price
  • C. A budgetary subsidy paid by the Government of India to oil marketing companies for processing Russian crude
  • D. A concessional rupee-rouble exchange rate applied by banks while settling payments for Russian crude

Q8. With reference to India's crude oil sourcing pattern during 2026, consider the following statements: 1. Russia was India's largest crude oil supplier in July 2026, accounting for about 55.5 per cent of total crude imports. 2. Russian crude imports touched a record of about 2.6 million barrels per day in June 2026, exceeding half of India's total oil imports that month. 3. Russia's share stood at about 36.5 per cent in May 2026, when imports from that source averaged about 2.13 million barrels per day. 4. India's top five crude suppliers together account for barely a third of its crude imports, no single supplier ever exceeding a fifth of the total. Which of the above is/are NOT correct?

  1. Russia was India's largest crude oil supplier in July 2026, accounting for about 55.5 per cent of total crude imports.
  2. Russian crude imports touched a record of about 2.6 million barrels per day in June 2026, exceeding half of India's total oil imports that month.
  3. Russia's share stood at about 36.5 per cent in May 2026, when imports from that source averaged about 2.13 million barrels per day.
  4. India's top five crude suppliers together account for barely a third of its crude imports, no single supplier ever exceeding a fifth of the total.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 2 and 3
  • D. 4 only

Q9. Following the revision of its formula in March 2026, the Indian crude oil basket is computed on which one of the following bases?

  • A. 78.50 per cent weight to the average of Oman and Dubai and 21.50 per cent to Dated Brent
  • B. 75.50 per cent weight to the average of Oman and Dubai and 24.50 per cent to Dated Brent
  • C. Equal one-third weights to Dated Brent, West Texas Intermediate and Dubai
  • D. 61 per cent weight to Dated Brent and 39 per cent to the average of Oman and Dubai

Q10. The oil import bill was cited as the single largest driver of the projected deterioration in India's external balance during the 2026 crude price shock. Which one of the following correctly states the magnitudes projected at the peak of that shock?

  • A. The current account deficit was projected to widen to 0.9 per cent of GDP in FY27, from 2.3 per cent in FY26.
  • B. The current account deficit was projected to widen to 2.3 per cent of GDP in FY27, from 0.9 per cent in FY26.
  • C. Forecasters subsequently raised the FY27 current account deficit projection to about 1.8 per cent of GDP, from about 1.3 per cent a month earlier.
  • D. The oil trade deficit was projected to shrink even as Brent crude averaged $90-95 a barrel through the year.

Q11. Consider the following statements about the 2026 West Asia crisis and its effect on oil markets: 1. Brent crude rose from about $60.75 a barrel on 1 January 2026 to about $105.32 a barrel by 27 March 2026, while the rupee weakened from about 89.96 to about 94.59 per US dollar over the same period. 2. A 14-point memorandum of understanding signed by Iran and the United States on 17 June 2026 called for the immediate and permanent termination of military operations on all fronts, yet hostilities affecting Hormuz shipping resumed later that month and in July. 3. In the week following the initial strikes, US crude futures fell 36 per cent, the sharpest weekly decline since futures trading began in 1983, even as Brent rose about 18 per cent in a single day to around $109 a barrel. Which of the statements given above is/are correct?

  1. Brent crude rose from about $60.75 a barrel on 1 January 2026 to about $105.32 a barrel by 27 March 2026, while the rupee weakened from about 89.96 to about 94.59 per US dollar over the same period.
  2. A 14-point memorandum of understanding signed by Iran and the United States on 17 June 2026 called for the immediate and permanent termination of military operations on all fronts, yet hostilities affecting Hormuz shipping resumed later that month and in July.
  3. In the week following the initial strikes, US crude futures fell 36 per cent, the sharpest weekly decline since futures trading began in 1983, even as Brent rose about 18 per cent in a single day to around $109 a barrel.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3