India's annual domestic oil product sales in May rose 6.3 per cent, its highest jump since October, to 12.38 million tonnes, on higher demand for auto fuels, government data showed on Thursday.
Petrol sales during the month rose an annual 13.1 per cent to 1.25 million tonnes on a 30-per cent jump in car sales as rising incomes and a rapidly expanding economy coupled with subsidised fuel prices perk up the demand.
Diesel sales grew by 11.1 per cent to 5.30 million tonnes in May, indicating higher demand from farm and industrial sectors.
Diesel runs pump sets used for irrigating farm lands.
Auto fuel sales rose as dealers stocked the fuel anticipating hike in prices.
A government panel will meet on Friday to decide on raising domestic fuel prices, a move that may further stoke inflation and spark off protests from the opposition.
Industrial output rose 17.60 per cent in April from a year earlier, the strongest since December. Data for May will be released on July 12.
Crude oil imports, fell 14.1 per cent to 11.54 million tonnes, or 2.73 million barrels per day (bpd), in May.
In May, fuel exports were down by 40.1 per cent from a year earlier, while imports grew 3.4 percent.
The government data does not include imports and exports by Reliance Industries' new 580,000 bpd export-focused refinery at Jamnagar, in western Gujarat state.