NEW DELHI: India's diesel sales fell 5.2% in the first half of December year-on-year, preliminary data from state-run fuel retailers showed on Wednesday, signalling that industrial growth in Asia's third-largest economy has not yet reached pre-COVID-19 levels.

Diesel consumption, a key parameter linked to economic growth and which accounts for about 40% of overall refined fuel sales in India, fell to 2.8 million tonnes in the first half of the month.

Growth in India's services and manufacturing industries lost some momentum last month as coronavirus fears weighed on demand and output, prompting firms to cut jobs for the eighth month in a row, two separate private surveys showed.

Gasoline sales rose by an annual 9.5% during the first half of the month to 1.05 million tonnes.

Local diesel sales by state-run refiners have been falling since March, when coronavirus-related restrictions had hit industrial activity and mobility. However, annual demand for diesel saw a temporary rise in October ahead of the festival season.

State fuel retailers -- Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum -- own about 90% of the country's retail fuel outlets.

Sales of jet fuel declined by 47% to about 180,000 tonnes while those of liquefied petroleum gas rose by 10.4% to 1.18 million tonnes during Dec. 1-15.