I recently purchased some wheels that have some oxidation on the lips and I was wondering what would be the best way to go with fixing them. Is there something I can use to fix them or do I have to completely refinish wheel.
Those wheels should be clearcoated; not raw metal.
Try something like Meg's ScratcX working by hand and see if things improve. Looks like someone tried to use metal polish on the clearcoat, which will scuff it up and haze the surface.
If you don't get black residue almost immediately on your rag, the surface is coated, not raw (I see the Mother's sitting there.)