New Delhi: India's oil demand grew by 10 per cent in May this year to 8.326 million tonnes on rise in consumption of diesel.

Diesel demand surged 13.6 per cent to 3.531 million tonnes as opposed to 3.109 million tonnes in the same month last year, according to the latest figures by the Ministry of Petroleum and Natural Gas.

The rise in oil demand was partly due to increased consumption during electioneering and an anticipated increase in auto fuel and cooking gas prices, a ministry official said.

Cooking gas consumption rose 22.6 per cent to 800,000 tonnes in May 2004 from 653,000 tonnes in the year-ago period, while petrol sales was up 10 per cent to 737,000 tonnes as against 670,000 tonnes.

Kerosene demand, however, fell by 1.5 per cent to 765,000 tonnes mainly due to a ban on import of the fuel by private firms.

Demand for naphtha, a key input in industrial production, was up 12.1 per cent to 532,000 tonnes.

In the first two months of the current fiscal, India's oil demand spurted 14 per cent to 16.413 million tonnes as compared to 14.396 million tonnes consumption in April-May last financial year.

Diesel demand was up 19.5 per cent to 7.017 million tonnes, LPG 20.1 percent to 1.568 million tonnes and petrol consumption was up 12.1 per cent to 1.416 million tonnes.

Kerosene sales was down 1.8 per cent to 1.531 million tonnes in April-May while naphtha consumption increased 6.2 per cent to 1.011 million tonnes.