UPDATE 1-India's July local fuel sales rise 3.6 pct y/y

The government expects oil product demand to rise by 2.4 percent in current fiscal year to March 2010. [ID:nDEL364963]

Diesel sales jumped 10.8 percent in July, driven by higher consumption in the key grain producing states where the fuel is used to run water pumpsets.

"Eight state across India recorded abnormally high growth of more than 25 percent of which four are in the north. Diesel sales in the north account for nearly a third of overall diesel consumption in the country," the government said in a statement.

For a table on oil sales, see: [ID:nDEL385130]

Petrol sales rose 10.1 percent in July from a year earlier, with a pick-up in car sales driving demand.

Car sales rose an annual 31 percent in July, rising for a sixth straight month and reinforcing the country was one of the few markets where demand has been picking up. [ID:nDEL339663]

Crude oil imports in July fell 16 percent from a year ago to 2.37 million barrels per day (bpd) or 10.02 million tonnes, while fuel exports were down by 56.6 percent.

The data does not include imports and exports by Reliance Industries' (RELI.BO: Quote, Profile, Research) new 580,000 bpd export-focused refinery at Jamnagar in western Gujarat state.

Traders estimate Reliance's total crude import in July rose 65.5 percent annually. [ID:nDEL313893]