This document discusses oil accounting and gross refinery margins. It defines key inventory classifications like raw materials, work-in-progress, and finished goods. It also explains different inventory costing methods like FIFO, average cost, and specific identification. Gross refinery margin is defined as the difference between crude oil costs and total sales value of refined products. Factors that affect GRM are also discussed, as well as historical GRM trends globally and for India. India is expected to have surplus refining capacity in the future.