UPSC Prelims Practice Questions — Russia restarts diesel exports after Trump deal: Kremlin

Q1. With reference to the tools a government can use to restrict exports of a fuel such as diesel, consider the following statements: Which of the statements given above is/are correct?

1. An export duty earns the government revenue on the volumes that continue to be exported, whereas an outright export ban earns no such revenue.
2. An export ban by a major supplier tends to raise the world price of the product while pushing down its price in the banning country's domestic market.
3. An export quota caps the exported volume directly, whereas an export duty affects the exported volume only through its effect on prices.

• A. 2 and 3 only
• B. 1 and 2 only
• C. 1, 2 and 3
• D. 1 and 3 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

1. Under GATT Article XI, an export duty on diesel is prohibited in the same way as an outright ban on diesel exports.
2. GATT Article XI permits export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting country.

• A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
• B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
• C. Statement-I is correct, but Statement-II is incorrect
• D. Statement-I is incorrect, but Statement-II is correct

Q3. With reference to the price cap imposed on Russian oil after 2022, consider the following statements: Which of the statements given above is/are correct?

1. It is enforced mainly by denying maritime services such as insurance to cargoes of Russian oil sold above the cap.
2. It legally prohibits countries outside the coalition, such as India, from purchasing Russian oil at prices above the cap.
3. It was imposed through a resolution of the United Nations Security Council and therefore binds all UN member states.

• A. 1 only
• B. 1 and 3 only
• C. 1 and 2 only
• D. 2 and 3 only

Q4. Consider the following statements: Which of the following is correct in respect of the above statements?

1. The G7 and the EU fixed a higher price cap for Russian petroleum products such as diesel than for Russian crude oil.
2. Refined petroleum products such as diesel normally trade at prices above that of crude oil.

• A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
• B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
• C. Statement-I is correct, but Statement-II is incorrect
• D. Statement-I is incorrect, but Statement-II is correct

Q5. Consider the following statements about the likely effects on India of a sustained rise in global crude oil prices: Which of the statements given above is/are correct?

1. It tends to widen India's current account deficit.
2. How much of it passes through to headline inflation depends partly on the excise duties levied on petroleum products.
3. It improves India's terms of trade, since India is an exporter of refined petroleum products.

• A. 1, 2 and 3
• B. 1 and 2 only
• C. 1 only
• D. 2 and 3 only

Q6. With reference to supply-side influences on world oil prices, consider the following statements: Which of the statements given above is/are correct?

1. Russia has undertaken voluntary production cuts as part of OPEC+ arrangements.
2. Because OPEC+ production cuts apply to crude oil, they cannot influence the prices of diesel.
3. Voluntary production cuts by OPEC+ members are aimed at supporting prices, the reverse of the stated purpose of Russia's October 2026 diesel export relaxation.

• A. 2 and 3 only
• B. 1 and 2 only
• C. 3 only
• D. 1 and 3 only

Q7. India's strategic crude oil reserve at Padur in Karnataka is an example of which type of storage?

• A. Depleted offshore oil and gas fields
• B. Excavated underground rock caverns
• C. Above-ground steel tanks at refineries
• D. Solution-mined underground salt domes