Indian oil product sales in January rose 4.0 percent to eight million tonnes in January from the same month a year ago, an industry official told Reuters on Tuesday.
Oil product sales rose in step with an expanding economy, as industrial units consumed more furnace oil and naphtha while trucks and passenger cars burnt more diesel and petrol.
Industry officials say domestic oil sales are expected to keep growing three to four percent year-on-year as the economy, which grew four percent in 2002/03, is expected to grow a scorching 8.1 percent in the year to March.
Sale of diesel, which accounts for 40 percent of oil products sold in India, rose 3.02 percent to 3.07 million tonnes while petrol sales rose 3.01 percent to 631,700 tonnes.
The demand for transport fuels is expected to grow in coming months with rising sales of passenger cars, buses and trucks.
In January, domestic passenger car sales jumped 31.1 percent while trucks and buses clocked 35.5 percent growth and motorcycle sales climbed 14.9 percent.
Naphtha sales grew 10.5 percent because of higher demand from the petrochemicals sector and power producers.
Demand for furnace oil grew 9.8 percent to 627,600 tonnes because of greater sales to industrial units. India's industrial output grew 6.2 percent year-on-year in December.
India's booming tourism industry pulled up the demand for jet fuel by 19.1 percent in January.
Industry officials say jet fuel demand is expected to be healthy as recent tax cuts have made air travel more affordable.
The data for oil product sales does not include kerosene imports and Reliance Industries' oil products consumed by its own petrochemical units.
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