Mirroring slowdown in the economy, India's fuel consumption grew by a bare 4.4 per cent in December with diesel sales recording the lowest expansion rate in the current fiscal.

Petroleum product consumption rose 11.6 million tons in December as against 11.12 million tons a year ago, according to the latest data available from petroleum ministry in New Delhi.

Diesel, the most consumed fuel in the country, recorded a 1.5 per cent growth at 4.43 million tons. "This was mostly due to dealers reducing upliftments and keeping low inventory in anticipation of a price cut," an official said.

Low freight traffic with railways, a major consumer of diesel, and not-so-encouraging agriculture scenario also contributed to the low growth rate.

Petrol demand grew 5.5 per cent to 929,300 tons.

Slowdown in demand also reflected on crude oil imports, which fell 40 per cent to 6.85 million tons in December.

Maintenance shutdown at some public sector refineries led to a 60.3 per cent lower crude imports by PSU firms at 2.98 million tons, while private imports were almost unchanged at 3.86 million tons.

Petroleum product imports were down 21.4 per cent at 1.632 million tons with naphtha being the most imported fuel at 5,53,000 tons (14.3 per cent growth).

Exports also declined 12.3 per cent to 2.58 million tons with diesel shipments fall 18.4 per cent at 1.08 million tons.

"While PSU exports (at 8,28,400 tons) are in line with trend in current year, private exports (at 1.75 million tons) were the lowest in December," the official said. "Total export volume lost up to December 2008 was 2.7 million tons of which PSUs lost 2.03 million tons."

During April-December, fuel consumption grew four per cent at 98.22 million tons with diesel sales expanding by 9.6 per cent to 38.18 million tons.

Petrol demand increased 7.8 per cent to 8.28 million tons, while LPG sales was up marginally by 1.4 per cent to 8.99 million tons.

Crude oil imports in the first nine months of the current fiscal was up 1.9 per cent to 92.93 million tons. Petroleum product imports, however, dipped 13.4 per cent to 14.63 million tons with inward shipment of diesel rising by seven per cent to 1.95 million tons.

Oil product exports dipped 9 per cent to 26.93 million tons. Diesel led the charged with 8 per cent fall at 9.99 million tons.