India's fuel demand rose 3.9% in July compared with the same month last year.
Consumption of fuel, a proxy for oil demand, totalled 14.92 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
Sales of gasoline, or petrol, were 14.7% higher from a year earlier at 1.92 million tonnes.
Cooking gas or liquefied petroleum gas (LPG) sales increased 8.8% to 1.71 million tonnes, while naphtha sales surged 6.3% to 1.10 million tonnes.
Sales of bitumen, used for making roads, were 0.7% lower, while fuel oil use edged up 6.5% in July.