UPSC Prelims Practice Questions — Oil risk: why India and the Global South need fossil-fuel intensity metric

Q1. In the context of crude oil pricing in India, the term 'Indian Basket' most precisely refers to which one of the following?

  • A. A weighted average of sour-grade (average of Oman and Dubai) and sweet-grade (Brent Dated) crude prices, combined using the proportions of each grade refined in India
  • B. The simple arithmetic average of the Brent, WTI and Dubai crude spot prices
  • C. The average price of crude oil produced domestically by ONGC and Oil India Limited
  • D. A basket of refined petroleum products (petrol, diesel and LPG) used to fix retail fuel prices

Q2. With reference to the composition of India's crude oil 'Indian Basket', consider the following statements: 1. Brent Dated crude represents the sweet-grade component of the basket. 2. The sour-grade component is taken as the average of Oman and Dubai crude prices. 3. West Texas Intermediate (WTI) is one of the constituent crudes of the basket. 4. The two grades are always weighted in an equal 50:50 proportion, regardless of refinery intake. Which of the above is/are correctly identified?

  1. Brent Dated crude represents the sweet-grade component of the basket.
  2. The sour-grade component is taken as the average of Oman and Dubai crude prices.
  3. West Texas Intermediate (WTI) is one of the constituent crudes of the basket.
  4. The two grades are always weighted in an equal 50:50 proportion, regardless of refinery intake.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 2 and 4
  • D. 3 and 4 only

Q3. With reference to the term 'Global South', which one of the following statements is the most accurate?

  • A. It is a socio-economic and political grouping of developing/less-developed countries, largely in Africa, Asia and Latin America, and is not defined strictly by geography
  • B. It refers exclusively to all countries that lie geographically south of the Equator
  • C. It is a formal intergovernmental organisation with a permanent charter and secretariat
  • D. It denotes only the Least Developed Countries (LDCs) as classified by the United Nations

Q4. India's flagship diplomatic initiative to consolidate and amplify the concerns of developing nations, the 'Voice of Global South Summit', is convened by which one of the following Union Ministries/bodies?

  • A. Ministry of External Affairs
  • B. Ministry of Commerce and Industry
  • C. NITI Aayog
  • D. Ministry of Finance

Q5. The '1973 oil crisis', cited as the earliest structural oil shock for oil-importing developing economies, is most accurately described as which one of the following?

  • A. A selective embargo and production cuts by Arab oil producers against states perceived as supporting Israel during the Yom Kippur War, which caused prices to roughly quadruple
  • B. A complete and permanent halt of all crude oil exports by every member of OPEC
  • C. A collapse in global crude prices caused by chronic overproduction among OPEC members
  • D. A coordinated nationalisation of Western oil companies undertaken by Venezuela and Iran alone

Q6. OPEC was founded at the 1960 Baghdad Conference. How many countries were its founding members?

  • A. Four
  • B. Five
  • C. Six
  • D. Seven

Q7. Among India's Phase-I Strategic Petroleum Reserve locations, which single site has the largest crude oil storage capacity?

  • A. Padur (near Udupi) — 2.5 MMT
  • B. Mangalore — 1.5 MMT
  • C. Visakhapatnam — 1.33 MMT
  • D. Chandikhol — 4 MMT

Q8. The construction and management of India's strategic crude oil storages is carried out by which one of the following entities?

  • A. Indian Strategic Petroleum Reserves Limited (ISPRL)
  • B. Oil Industry Development Board (OIDB)
  • C. Indian Oil Corporation (IOC)
  • D. Petroleum Planning & Analysis Cell (PPAC)

Q9. With reference to the composite index proposed in the 2026 commentary on oil risk for India and the Global South, consider the following statements: 1. Unlike existing energy metrics, it combines fossil-fuel intensity, a fossil-fuel vulnerability score and the benefits of fuel-substitution programmes into a single measure. 2. It has already been adopted as an official index by the Ministry of Petroleum and Natural Gas. 3. It is intended to capture the Global South's exposure to fossil-fuel price and supply-chain shocks that existing metrics fail to reflect. Which of the statements given above is/are correct?

  1. Unlike existing energy metrics, it combines fossil-fuel intensity, a fossil-fuel vulnerability score and the benefits of fuel-substitution programmes into a single measure.
  2. It has already been adopted as an official index by the Ministry of Petroleum and Natural Gas.
  3. It is intended to capture the Global South's exposure to fossil-fuel price and supply-chain shocks that existing metrics fail to reflect.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. The Petroleum Planning & Analysis Cell (PPAC) was constituted following the dismantling of the Administered Pricing Mechanism and the abolition of the Oil Coordination Committee. With effect from 1 April of which year did it come into existence?

  • A. 2000
  • B. 2002
  • C. 2004
  • D. 2007

Q11. As of 2025, approximately what share of the world's crude oil trade passed through the Strait of Hormuz?

  • A. About one-tenth (10%)
  • B. About one-fifth (20%)
  • C. About one-third (34%)
  • D. About one-half (50%)

Q12. Which one of the following is India's single largest source of installed renewable energy capacity (early 2026)?

  • A. Solar power
  • B. Wind power
  • C. Large hydropower
  • D. Biomass / bio-power