UPSC Prelims Practice Questions — India’s August crude imports dropped 3%, spend rose 18%: data
Q1. The reference price used by the Government of India for crude oil, whose monthly average is quoted while reporting India's oil import bill, is computed and published by which authority and on what basis?
- A. The Directorate General of Hydrocarbons, from the weighted average of realised prices of crude produced from ONGC and OIL nomination fields
- B. The Petroleum Planning and Analysis Cell, from a derived basket of sour grade crude (Oman and Dubai average) and sweet grade crude (Dated Brent)
- C. The Petroleum and Natural Gas Regulatory Board, from the trade-weighted average of prices actually paid by Indian refiners in a month
- D. The Office of the Economic Adviser, from the simple average of daily Brent, WTI and Dubai spot quotations in a month
Q2. With reference to the monthly average price of the Indian Basket of crude oil in 2026, consider the following statements:
1. Its August 2026 average exceeded its August 2025 average by more than 30 per cent.
2. Its average rose month-on-month between July 2026 and August 2026.
3. Its August 2026 average crossed US$ 100 per barrel.
4. Its July 2026 average was below US$ 85 per barrel.
Which of the statements given above is/are correct?
- Its August 2026 average exceeded its August 2025 average by more than 30 per cent.
- Its average rose month-on-month between July 2026 and August 2026.
- Its August 2026 average crossed US$ 100 per barrel.
- Its July 2026 average was below US$ 85 per barrel.
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1 and 3 only
Q3. Which one of the following best describes the principal institutional role of the Petroleum Planning and Analysis Cell in India's hydrocarbon sector?
- A. Awarding exploration acreages and monitoring contractors' minimum work programmes under production sharing contracts
- B. Regulating transportation tariffs for petroleum pipelines and authorising city gas distribution networks in notified areas
- C. Collecting, compiling and disseminating oil and gas sector data and monitoring price trends as technical input for policy making
- D. Financing oil sector development and infrastructure projects out of a corpus built from the cess levied on crude oil
Q4. Consider the following statements regarding the Petroleum Planning and Analysis Cell:
1. Besides the international price of the Indian Basket, it also publishes domestic retail selling prices of petrol and diesel.
2. Its data mandate is confined exclusively to crude oil, natural gas and LPG being entirely outside its coverage.
3. It has entered into a formal arrangement with the International Energy Agency for cooperation in energy data and research.
Which of the statements given above is/are correct?
- Besides the international price of the Indian Basket, it also publishes domestic retail selling prices of petrol and diesel.
- Its data mandate is confined exclusively to crude oil, natural gas and LPG being entirely outside its coverage.
- It has entered into a formal arrangement with the International Energy Agency for cooperation in energy data and research.
- A. 1 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q5. In the monthly petroleum statistics released for India, the 'net oil import bill' for a month is best understood as which one of the following?
- A. The value of crude oil and gas imports reduced by the value of petroleum product exports during that month
- B. The value of crude oil imports alone, reckoned entirely net of customs duty, freight and insurance charges
- C. The value of all petroleum imports reduced by the entire subsidy borne by the Centre on petroleum products
- D. The value of petroleum imports converted at the month's average rupee-dollar rate, excluding all LNG purchases
Q6. With reference to India's petroleum trade in August 2026, consider the following statements:
1. Crude oil import volume fell by about 3 per cent year-on-year, from 19.6 MMT to 19 MMT.
2. The crude oil import bill rose by about 18 per cent year-on-year to roughly US$ 11.7 billion.
3. LNG import volume fell by nearly 10 per cent year-on-year.
4. Refiners' petroleum product export earnings were about 43 per cent higher year-on-year even though export quantity declined.
Which of the statements given above is/are correct?
- Crude oil import volume fell by about 3 per cent year-on-year, from 19.6 MMT to 19 MMT.
- The crude oil import bill rose by about 18 per cent year-on-year to roughly US$ 11.7 billion.
- LNG import volume fell by nearly 10 per cent year-on-year.
- Refiners' petroleum product export earnings were about 43 per cent higher year-on-year even though export quantity declined.
- A. 1 and 3 only
- B. 2, 3 and 4
- C. 1, 2 and 4
- D. 1, 2 and 3
Q7. Two additional commercial-cum-strategic petroleum reserve facilities of 6.5 MMT at Chandikhol and Padur were approved by the Union Government in which year and for development under which mode?
- A. 2018, through engineering-procurement-construction contracts funded by budgetary support
- B. 2021, through the public private partnership mode
- C. 2023, through joint ventures between national oil companies and foreign oil majors
- D. 2019, on a nomination basis entrusted to the Oil Industry Development Board
Q8. India's crude oil 'import dependence', officially cited at about 85 per cent, is measured as which one of the following?
- A. Net imports of crude oil as a proportion of domestic crude oil consumption
- B. The crude oil import bill as a proportion of India's total merchandise import bill in a year
- C. Imported crude as a proportion of the refining throughput of public sector refineries in a year
- D. Crude oil imports as a proportion of India's total primary commercial energy consumption
Q9. With reference to India's imports of Russian crude oil during 2026, consider the following statements:
1. Russia remained India's single largest source of crude oil in August 2026.
2. Russian crude made up about 21 per cent of India's crude imports in January 2026, its lowest share since late 2022.
3. Discounts on Urals crude widened beyond US$ 20 a barrel during 2026, the widest since the war began.
4. Russian crude volumes in August 2026 were lower than the record levels reached in June and July 2026.
Which of the statements given above is/are correct?
- Russia remained India's single largest source of crude oil in August 2026.
- Russian crude made up about 21 per cent of India's crude imports in January 2026, its lowest share since late 2022.
- Discounts on Urals crude widened beyond US$ 20 a barrel during 2026, the widest since the war began.
- Russian crude volumes in August 2026 were lower than the record levels reached in June and July 2026.
- A. 1, 2 and 4
- B. 1, 3 and 4
- C. 2 and 3 only
- D. 1, 2, 3 and 4
Q10. In the context of the 2026 West Asian supply disruptions, the 'risk premium' in crude oil prices refers to which one of the following?
- A. The amount by which prices exceed the level justified by physical supply and demand, reflecting the perceived threat of supply disruption
- B. The war-risk insurance and freight surcharge levied by shipowners on tankers transiting a conflict-affected sea lane
- C. The premium payable for a lighter, sweeter grade of crude over a heavier, more sour grade of comparable delivery
- D. The excess of the delivered cost of a cargo at the discharge port over its quoted price at the loading port
Q11. Of the blocks awarded to Oil India Limited across the concluded bid rounds of the Open Acreage Licensing Programme, how many are located in Northeast India?
Q12. The oil import bill enters India's external accounts as the single largest merchandise import item. Which institution compiles and releases India's Balance of Payments statistics in which this item appears?
- A. The Reserve Bank of India, which releases the quarterly balance of payments data for the Indian economy
- B. The Directorate General of Commercial Intelligence and Statistics, which alone records every external transaction of India
- C. The National Statistical Office, which is responsible for all national and external accounts of the Government of India
- D. The Controller General of Accounts, which publishes the entire set of India's monthly external sector accounts