Despite the gradual increase in local fuel prices, revised based on the fuel price formula, Lanka Indian Oil Corporation (LIOC) recorded a loss of Rs. 239 million during the quarter ended on 30 June, compared to a profit of Rs. 938 million, a quarter ago. While the revenue and the cost of sales remained almost the same at Rs. 18 billion and Rs. 17 billion respectively during the first quarter of the financial year 2019/2020 as the previous quarter, gross profit came down to Rs. 527 million from Rs. 1.4 billion. Profit/loss before tax during this quarter was Rs. 266 million while it was Rs. 765 million in the previous quarter. The Sri Lankan Government revised fuel prices six times this year based on the fuel price formula which was brought in to reflect the fluctuations in global oil prices. Amongst the six revisions, local prices of fuel increased on four occasions. During the second quarter of the year, the prices were revised two times and during both occasions, prices went up or remained the same due to increasing global oil prices. Despite the Sri Lankan rupee being the worst performing currency in the Asian region and the political disruption over the continued implementation of the formula in the fourth quarter of 2018, LIOC improved its gross margins to 4.9% from 2% a year ago. LIOC cut down its losses by nearly 50% in the calendar year 2018, with its losses coming down to Rs. 625 million from the Rs. 1.3 billion recorded a year ago.