State retailers sold about 6.7 million tonnes of gasoil in January, a decline of 8.6% from the previous month, the data showed.
Gasoil accounts for about two-fifths of refined fuel consumption in India and is directly linked to industrial activity.
Cold weather and softening industrial activity curbed the movement of gasoil-guzzling trucks last month.
India's manufacturing industry expanded at the slowest pace in three months in January as output and sales growth slackened, according to a private survey.
The Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 55.4 last month from 57.8 in December, well below the 57.4 predicted in a Reuters poll.
Gasoline sales in January were at 2.6 million tonnes, declining by 5.1% from December, the data showed.
State retailers - Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - control about 90% of India's fuel stations.
Below is a table of India's preliminary fuel sales data with volumes in thousand tonnes.
Refined fuels Jan 2023 % Chg %Chg %Chg vs
mth/mth yr/yr 2021
Gasoline 2621.5 -5.1 17.6 11.3
Gasoil 6678.9 -8.6 18.5 10.5
Jet Fuel 614.7 1.23 45.0 47.8
Liquefied Petroleum Gas 2637.7 -3.21 0.18 5.7
(Reporting by Nidhi Verma; Editing by Savio D'Souza)
By Nidhi Verma