UPSC Prelims Practice Questions — Summer heat and oil shock raise concerns for India’s energy demand
Q1. In the context of India's oil economy, the term 'Indian Basket of Crude Oil' most accurately refers to which one of the following?
- A. A derived benchmark price computed as a weighted average of Oman & Dubai (sour-grade) and Brent Dated (sweet-grade) crude oils
- B. The fixed contract price at which ONGC sells all domestically produced crude to public-sector refineries
- C. The blend of crude oils physically stored across India's three Strategic Petroleum Reserve caverns
- D. The average landed cost of only the crude imported from India's West Asian suppliers
Q2. According to official government data on diversification of India's crude oil sourcing, India currently imports crude oil from approximately how many countries?
- A. About 10 countries
- B. About 20 countries
- C. About 40 countries
- D. About 75 countries
Q3. The Strait of Hormuz lies between the territorial waters of which two states on its directly opposing northern and southern shores?
- A. Iran on the north and Oman (Musandam exclave) on the south
- B. Iran on the north and Saudi Arabia on the south
- C. Iraq on the north and the United Arab Emirates on the south
- D. Iran on the north and Qatar on the south
Q4. The Strait of Hormuz is frequently described as a global 'chokepoint'. In this context, a chokepoint is best defined as which one of the following?
- A. A narrow, strategically vital shipping channel through which a large share of trade must pass and which cannot easily be bypassed by alternative routes
- B. Any maritime zone where a coastal state has declared an exclusive economic zone extending 200 nautical miles
- C. A stretch of international waters where naval blockades are permanently prohibited under UN treaty
- D. A deep-water port designated for the exclusive transhipment of liquefied natural gas cargoes
Q5. In discussions of India's declining domestic crude output, 'Mumbai High' (Bombay High) is correctly described as which one of the following?
- A. India's largest offshore oil field, located in the Arabian Sea and operated by ONGC
- B. India's largest onshore oil field, located in the Barmer basin of Rajasthan
- C. A deep-water natural gas block in the Krishna-Godavari basin off the eastern coast
- D. The oldest producing onshore oilfield of India, situated in Upper Assam
Q6. Which single entity accounts for the largest share of India's domestic crude oil production?
- A. Oil and Natural Gas Corporation (ONGC)
- B. Oil India Limited (OIL)
- C. Cairn Oil & Gas (Vedanta)
- D. Reliance Industries Limited (RIL)
Q7. With reference to India's policy target for natural gas in its energy mix, consider the following statements:
1. The target is to raise the share of natural gas in the primary energy mix to 15% by 2030.
2. The share of natural gas in the energy mix currently stands at about 6.3%.
3. LNG imports fall under the Open General Licence (OGL) category.
Which of the statements given above is/are correct?
- The target is to raise the share of natural gas in the primary energy mix to 15% by 2030.
- The share of natural gas in the energy mix currently stands at about 6.3%.
- LNG imports fall under the Open General Licence (OGL) category.
- The establishment of LNG terminals requires prior government approval and does not permit foreign direct investment.
- A. 1 and 2 only
- B. 1, 2 and 3 only
- C. 2, 3 and 4 only
- D. 1 and 4 only
Q8. With reference to India's peak electricity demand around the 2026 summer, consider the following statements:
1. India's all-time peak electricity demand had crossed about 250 GW by May 2024.
2. During the April 2026 heatwave, peak demand touched about 256 GW.
3. The CEA's mid-term review of the 20th Electric Power Survey projects a peak demand of about 289 GW for 2026-27.
4. The summer peak is met entirely by thermal (coal) sources, with no contribution from renewables.
Which of the statements given above is/are correct?
- India's all-time peak electricity demand had crossed about 250 GW by May 2024.
- During the April 2026 heatwave, peak demand touched about 256 GW.
- The CEA's mid-term review of the 20th Electric Power Survey projects a peak demand of about 289 GW for 2026-27.
- The summer peak is met entirely by thermal (coal) sources, with no contribution from renewables.
- A. 1 and 3 only
- B. 2, 3 and 4 only
- C. 1, 2 and 3 only
- D. 1 and 4 only
Q9. Amid the 2026 crude oil price shock, which currency was reported as the worst-performing Asian currency of calendar year 2026?
- A. The Indian rupee
- B. The Japanese yen
- C. The Indonesian rupiah
- D. The South Korean won
Q10. The construction and operation of India's Strategic Petroleum Reserve facilities at Visakhapatnam, Mangaluru and Padur is undertaken by which one of the following entities?
- A. Indian Strategic Petroleum Reserves Limited (ISPRL), under the Ministry of Petroleum & Natural Gas
- B. Petroleum Planning & Analysis Cell (PPAC)
- C. Oil and Natural Gas Corporation (ONGC)
- D. GAIL (India) Limited
Q11. As announced by the Prime Minister at COP26, what is India's target for installed electricity capacity from non-fossil fuel sources by 2030?
- A. 175 GW
- B. 280 GW
- C. 450 GW
- D. 500 GW