India's oil consumption rose nearly 3 per cent in September while diesel sales fell for the second time this fiscal.
Consumption of oil products in September at 12.3 million tonnes was 2.9 per cent higher than 11.95 million tonnes a year ago, the latest data available from the Petroleum Ministry said.
Total sale of diesel, the most consumed fuel in the country, fell to 4.899 million tonnes during the month from 4.908 million tonnes in September 2013.
This is the second drop in diesel sales this fiscal. In April, sales had dipped to 5.929 million tonnes when compared with 6.152 million tonnes in the same month last year.
Last fiscal, diesel demand dipped for the first time in more than a decade as monthly price hikes and increased power generation clipped consumption.
Diesel, which is India's most consumed fuel accounting for close to 43 per cent of the total petroleum product demand, has seen sales growth of 6-8 per cent since 2003-04. In 2013-14, diesel sales fell 1 per cent to 68.36 million tonnes.
The fall has been attributed to 50 paisa per litre hike in rates every month since January 2013, the last one installment of which was effected on September 1. Since then the rates have been deregulated and fall in international oil prices has led to a Rs 3.37 a litre cut this week.
Petrol prices, deregulated in June 2010 that led to rates falling in tandem with cost since August, on the other hand showed a 21.6 per cent surge in sales at 1.5 million tonnes in September.
LPG sales were up 15 per cent to 1.55 million tonnes while naphtha consumption dropped to 822,000 tonnes from 938,000 tonnes in September 2013.
The ministry said India's crude oil production fell 1.1 per cent to 3.04 million tonnes due to drop in output at state-owned ONGC as well as private sector firm operated fields.
While ONGC's production fell 0.8 per cent to 1.81 million tonnes, oil production from the Rajasthan block was down 2.7 per cent at 715,637 tonnes.
Natural gas production dropped 6.2 per cent to 2.71 billion cubic meters. ONGC output was 7.1 per cent lower at 1.77 bcm and offshore production by private firms fell 10.5 per cent to 611 million cubic meters.
The nation's 22 refineries turned 2.5 per cent less crude oil into fuel at 17.97 million tonnes as HPCL-Mittal Energy Ltd's Bhatinda refinery was shut after a fire incident.
The refineries operated at 101.69 per cent of their rated capacity as compared to 104.26 per cent capacity utilisation in September 2013.
