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India's fuel consumption fell in November after scaling a seven-month peak last month, government data showed on Thursday, as demand eased in the world's third biggest oil consumer after festival season.

Fuel consumption, a proxy for oil demand, totalled 17.13 million tonnes, down 4% from October and was 11.4% lower than a year before, data from the oil ministry's Petroleum Planning and Analysis Cell showed.

Fuel demand rose in October to a seven-month peak, while gasoline sales surged to an all-time high, as festivals boosted mobility and economic activity.

"Drop-off in demand points to seasonal factors," said Ed Moya, senior market analyst at brokerage OANDA.

"However, fuel demand outlook remains upbeat going into 2022 as COVID is not really impacting the country and good growth outlook on continued reopening momentum."

India's festival season ended in early November with the celebration of Diwali, a festival of lights.

Consumption of diesel, which accounts for about 40% of India's refined fuel sales, also eased 1.7% month-on-month to 6.51 million tonnes and was down 14% compared with November 2019.

Diesel sales were down 7.6% from the same period last year.

Sales of gasoline, or petrol, decreased by about 0.7% to 2.65 million tonnes year on year, but was 4.4% higher from November 2019. They were down 3.6% from October.

India, Asia's third-largest economy, last month said it will release 5 million barrels of oil from its strategic reserves in coordination with other buyers including the United States, China, Japan and South Korea.

Sales of cooking gas, or liquefied petroleum gas (LPG), decreased nearly 0.4% to 2.34 million tonnes year-on-year, while naphtha sales fell 19.4% to 1.13 million tonnes.

Sales of bitumen, used for making roads, were down 21.5%, while fuel oil use rose 3.9% in November.

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