India's fuel demand fell about 4.4% in September compared with a year earlier, data from the Petroleum Planning and Analysis Cell (PPAC) of the Oil Ministry showed on Friday.
Consumption of fuel, a proxy for oil demand, totalled 15.47 million tonnes, the data showed.
Demand for diesel, which is widely used for transportation as well as for irrigation needs in India, declined 6% year-on-year to 5.49 million tonnes.
Sales of gasoline, or petrol, rose by 3.3% from a year earlier to 2.45 million tonnes.
Cooking gas, or liquefied petroleum gas (LPG), sales increased by 4.8% to 2.27 million tonnes, while naphtha sales rose by 2.9% to 1.14 million tonnes.
Sales of bitumen, used for making roads, rose 38.3%, and fuel oil decreased by 7.4% last month.