UPSC Prelims Practice Questions — India’s crude oil imports decline by 4.3% in April, but bill goes up by 50%

Q1. India is the world's which-largest consumer of crude oil?

  • A. Second-largest
  • B. Third-largest
  • C. Fourth-largest
  • D. Fifth-largest

Q2. In the context of India's energy statistics, the 'crude oil import dependence' figure (~88%) most precisely denotes which of the following?

  • A. The proportion of India's total crude oil requirement that is met through imports
  • B. The ratio of the value of crude oil imports to the country's Gross Domestic Product
  • C. The ratio of crude oil imports to domestic crude oil production
  • D. The share of crude oil in India's total merchandise import bill

Q3. The April 2026 data showing India's crude oil import volume falling 4.3% even as the import bill rose sharply was compiled and released by which body?

  • A. Petroleum Planning and Analysis Cell (PPAC)
  • B. Directorate General of Commercial Intelligence and Statistics (DGCI&S)
  • C. Reserve Bank of India (RBI)
  • D. Petroleum and Natural Gas Regulatory Board (PNGRB)

Q4. By approximately what percentage did India's crude oil import bill (value) rise year-on-year in April 2026?

  • A. About 23%
  • B. About 30%
  • C. About 50%
  • D. About 81%

Q5. In energy-security discourse, the Strait of Hormuz is described as a 'chokepoint'. Which of the following best defines this term?

  • A. A narrow, heavily used navigable channel whose disruption can constrict a large share of global energy flows
  • B. A deep-water port designated exclusively for berthing very large crude carriers
  • C. Any strait that lies entirely within a single country's territorial waters
  • D. A maritime boundary beyond which coastal states may not regulate shipping

Q6. The following countries are frequently listed as relying on the Strait of Hormuz as the primary export route for their petroleum. Which of the above is/are NOT correctly identified?

  1. Iraq
  2. Kuwait
  3. Nigeria
  4. Qatar
  • A. 1 and 2
  • B. 3 only
  • C. 2 and 4
  • D. 3 and 4

Q7. In which year was the Petroleum Planning and Analysis Cell (PPAC) established, following the dismantling of the Administered Pricing Mechanism in the petroleum sector?

  • A. 1998
  • B. 2002
  • C. 2005
  • D. 2011

Q8. The Petroleum Planning and Analysis Cell (PPAC) functions as an attached office of which of the following ministries?

  • A. Ministry of Petroleum and Natural Gas
  • B. Ministry of Power
  • C. Ministry of Commerce and Industry
  • D. Ministry of Finance

Q9. In India's oil and gas import statistics, the term 'LNG' precisely refers to which of the following?

  • A. Natural gas, predominantly methane, cooled to about −162°C so that it liquefies for shipment
  • B. A liquefied mixture of propane and butane stored under moderate pressure at ambient temperature
  • C. Natural gas compressed at high pressure while remaining in the gaseous state
  • D. A refined petroleum distillate used mainly as a transport fuel

Q10. By approximately what percentage did LPG sales by public-sector oil companies fall year-on-year in April 2026?

  • A. 4.2%
  • B. 4.3%
  • C. 12.7%
  • D. 29.6%

Q11. India's 'net' oil and gas import bill nets spending on crude, LNG and LPG imports against export earnings from which single largest offsetting item?

  • A. Refined petroleum products
  • B. Natural gas re-exports
  • C. Crude oil re-exports
  • D. Petrochemical feedstock

Q12. In reports on India's crude imports, the phrase 'oil marketing companies' (OMCs) refers to which of the following?

  • A. Public-sector firms such as IOC, BPCL and HPCL that import and refine crude and retail petroleum products
  • B. State-owned firms engaged solely in exploration and production of domestic crude oil
  • C. Private trading houses licensed only to re-export imported crude
  • D. The statutory body that fixes the retail prices of petrol and diesel