Abstract:Petroleum Oil Refining is an important industry for any countrys economy.

It is so vital to Indian economy that it still remains one of the most regulated industries in India. Oil Refining and Petrochemicals further generates an entire energy value chain and support many other industries. Products of refining like LPG, Motor Spirit, Diesel, Bitumen, Naphtha and Petrochemicals are vital for supporting any economy. Reliance Industries Ltd (RIL) and Indian Oil Corporation Ltd (IOCL) are the major players in Indian Petroleum Refining Industry together constituting around 60 % of the total refining capacity present in India today. Where RIL has huge advantages where in it can process any type of crude produced in world as it has refineries of highest Nelson Index of 14, IOCL scores ahead of RIL in terms of having the largest distribution network and outlets in India. RIL has highest Gross Refining Margins in the world. These operational and financial Excellencies make its stocks as one of the favourites among the investors. Moreover RIL shares have higher Earnings per share and higher dividend payout ratios. Net profits, productivity per employee and sales per employee of RIL is also higher when we compare the same with IOCL. While RIL is diversifying into oil exploration and production, IOCL is looking into international markets for fuel retailing and lubricants marketing. Reliance is also investing into upcoming exploration like Coal bed methane and Shale gas through acquitting stakes in companies in USA. The future for refining industry looks dynamic and prosperous as India is becoming refining hub of the world.

Keywords: RIL, IOCL, Petroleum Refining Industry, GRM, Nelson Refining Index.