UPSC Prelims Practice Questions — Govt. hikes price of commercial LPG, 5-kg cylinders, bulk diesel
Q1. Among the following petroleum products, which one was the LAST to be brought under full market-determined pricing for all consumers (achieved in 2014)?
- A. Petrol
- B. Diesel
- C. Domestic (household) LPG
- D. PDS Kerosene
Q2. With reference to the deregulation of petroleum product prices in India, consider the following statements:
1. Petrol prices were deregulated in June 2010, ahead of diesel.
2. Diesel prices were made fully market-determined for all consumers in October 2014.
3. Domestic (household) LPG and PDS kerosene, like petrol and diesel, are now fully market-determined with no government control.
Which of the statements given above is/are correct?
- Petrol prices were deregulated in June 2010, ahead of diesel.
- Diesel prices were made fully market-determined for all consumers in October 2014.
- Domestic (household) LPG and PDS kerosene, like petrol and diesel, are now fully market-determined with no government control.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. Which one of the following is the standard subsidised household (domestic) LPG cylinder in India, of which roughly 47.4 lakh units are consumed every day?
- A. 5 kg Free Trade LPG (FTL) cylinder
- B. 14.2 kg cylinder
- C. 19 kg cylinder
- D. 47.5 kg cylinder
Q4. With reference to the categories of LPG cylinders in India, consider the following statements:
1. The 19 kg cylinder is meant for commercial/non-domestic use and is sold at market-determined prices.
2. The 5 kg Free Trade LPG (FTL) cylinder can be purchased only by PMUY beneficiaries.
3. Every 14.2 kg domestic cylinder is supplied entirely free of cost to all households.
Which of the statements given above is/are correct?
- The 19 kg cylinder is meant for commercial/non-domestic use and is sold at market-determined prices.
- The 5 kg Free Trade LPG (FTL) cylinder can be purchased only by PMUY beneficiaries.
- Every 14.2 kg domestic cylinder is supplied entirely free of cost to all households.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q5. The Special Additional Excise Duty (SAED)/Road & Infrastructure Cess levied on exports of diesel, ATF and petrol is notified by which one of the following?
- A. Ministry of Finance (Department of Revenue)
- B. Ministry of Petroleum and Natural Gas
- C. Ministry of Commerce and Industry
- D. NITI Aayog
Q6. With reference to the Special Additional Excise Duty (SAED) export levies imposed during the 2026 West Asia crisis, consider the following statements:
1. The export levies on petrol, diesel and ATF were introduced with effect from 27 March 2026 to disincentivise exports and ensure domestic availability.
2. The rates of these export levies are fixed permanently and never revised once notified.
3. The very same rate of SAED applies uniformly to petrol, diesel and ATF exports.
Which of the statements given above is/are correct?
- The export levies on petrol, diesel and ATF were introduced with effect from 27 March 2026 to disincentivise exports and ensure domestic availability.
- The rates of these export levies are fixed permanently and never revised once notified.
- The very same rate of SAED applies uniformly to petrol, diesel and ATF exports.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. With reference to India's energy import dependence on the Strait of Hormuz, consider the following statements:
1. Before the crisis, about 45% of India's crude oil imports transited the Strait of Hormuz.
2. India imports roughly 60% of its LPG consumption, of which about 90% comes through the Strait of Hormuz.
3. Following the crisis, India brought down its non-Hormuz crude sourcing to about 55%.
Which of the statements given above is/are correct?
- Before the crisis, about 45% of India's crude oil imports transited the Strait of Hormuz.
- India imports roughly 60% of its LPG consumption, of which about 90% comes through the Strait of Hormuz.
- Following the crisis, India brought down its non-Hormuz crude sourcing to about 55%.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q8. The Inter-Ministerial Group of Ministers (IGoM) constituted in 2026 to review the West Asia situation and India's energy preparedness was chaired by which Union Minister?
- A. Raksha Mantri (Defence Minister)
- B. Minister of Petroleum and Natural Gas
- C. Finance Minister
- D. Minister of External Affairs
Q9. With reference to the Government's fuel-pricing response during the May–June 2026 oil shock, consider the following statements:
1. Export levies (SAED/RIC) on petrol, diesel and ATF were introduced with effect from 27 March 2026 to disincentivise exports.
2. Excise duty on petrol and diesel was reduced to shield consumers and OMCs from the global oil shock.
3. Prices of domestic (household) LPG were raised sharply, in step with commercial LPG.
Which of the statements given above is/are correct?
- Export levies (SAED/RIC) on petrol, diesel and ATF were introduced with effect from 27 March 2026 to disincentivise exports.
- Excise duty on petrol and diesel was reduced to shield consumers and OMCs from the global oil shock.
- Prices of domestic (household) LPG were raised sharply, in step with commercial LPG.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q10. India's Strategic Petroleum Reserves (SPR) at Visakhapatnam, Mangaluru and Padur are built and managed by which one of the following?
- A. Indian Strategic Petroleum Reserves Limited (ISPRL)
- B. Oil Industry Development Board (OIDB)
- C. Petroleum Planning & Analysis Cell (PPAC)
- D. Directorate General of Hydrocarbons (DGH)
Q11. Which one of the following schemes is recognised by the Guinness Book of World Records as the world's largest cash transfer programme, under which LPG subsidy is credited directly to beneficiaries' bank accounts?
- A. PAHAL (DBTL)
- B. Pradhan Mantri Ujjwala Yojana (PMUY)
- C. PM-KISAN
- D. Pradhan Mantri Garib Kalyan Yojana