India is the 6^th largest consumer of petroleum. By the year 2010, India is expected to rank 4^th in terms of consumption of energy. The contribution of the Indian oil and natural gas industry is nearly US$ 13.58 billion. All of the refineries in India, apart from two are operated by the states. Indian petroleum demands are fed by the imports of oil and natural gas. Around 70% of the demands are fed by the imports oil and natural gas. The security pertaining to energy has become one of the primary concerns of the central government. Hence an attempt has been made to analyze the inventory management of selected oil refineries with help of mean, correlation between inventory and sales and ratio analysis.