The demand growth was slower than 11.5 per cent recorded in 2015-16 when consumption had jumped to 184.67 MT from 165.5 MT in the previous year.
Demand for diesel, the most consumed fuel in the country, grew 1.8 per cent to 74.6 MT in 2016-17. Diesel consumption has soared 7.5 per cent in 2015-16.
Last fiscal saw LPG sales move up 9.8 per cent to 19.6 MT as government released 2 crore new connections for the poor.
Petrol consumption was up 8.8 per cent to 21.84 MT on the back of rise in two-wheeler and car sales. Jet fuel sales were up 12 per cent at 6.2 MT.
Kerosene demand however declined by a steep 21 per cent to 6.8 MT as government restricted supply of subsidised cooking fuel only to the identified needy. Also, LPG replaced it as a cooking fuel in many households.
During March, fuel demand fell 0.6 per cent to 17.35 MT.
Petrol sales were up 2.9 per cent at 2.1 MT but diesel consumption showed a marginal 0.3 per cent rise at 6.8 MT. LPG demand was too was up only 1.9 per cent while kerosene sales fell by a massive 26 per cent to 4,14,000 tonnes.
While naphtha demand surged 1.8 per cent to 1.14 MT, sales of bitumen, used for making roads, was 12.2 per cent lower. Fuel oil use edged lower 23.4 per cent to 5,67,000 tonnes in March.