Petrol price hike viewed as opportunity for Knutsford Express

Cross country bus service, Knutsford Express Services Limited (KEX) argued that the rise in petrol prices due to the conflict in the Middle East could benefit its business.

CEO Oliver Townsend said the increase in fuel costs pitches the company’s passenger and courier services as an economical alternative to individual travel.

“We view this as an opportunity to further position the company as a smart, cost-effective transport solution for our customers,” said Towsend in response to Financail Gleaner queries. He added that a rise in ticket prices was “unlikely” at this time.

The conflict began on February 28 when Israel and the United States launched strikes against Iran. A fragile two-week ceasefire brokered by Pakistan – which borders Iran, took effect on April 8.

Fuel prices have risen since hostilities began, with gasoline 87 prices from Petrojam moving from $151.32 on February 26 to $176.88 on April 16. Auto diesel moved from $162.25 to $189.25 over the same period, an increase of 16.6 per cent.

Townsend, however, said the rising fuel prices could position the company to benefit.

“While the increase in diesel prices – up approximately $27 since late February – has had some impact on our operating costs, it also reinforces the value proposition of Knutsford Express. As fuel costs rise, the relative cost of individual travel increases, making our passenger and courier services a more efficient and economical alternative to driving,” Townsend stated.

The company has been showing signs of recovery after losses caused by Hurricane Melissa, which devastated the western parishes on October 28 last year. For the quarter ending February 28, 2026, KEX made net profit of $15.8 million – a 68.4 per cent decline from $50 million in the same quarter the previous year. It generated revenue of $544 million, which was down 8.2 per cent from $593 million in the comparable period.

For the nine months to February 28, profit fell to $78.6 million compared with $169.7 million in the prior period, as Hurricane Melissa’s disruption to western parish routes weighed heavily on performance. “While this reflects a significant decline, it reflects a steady recovery trajectory and the underlying resilience of our core operations,” the directors’ report stated.

In the financial year ended May 2025, the company spent $193 million on fuel, representing 10 per cent of its administrative and general expenses. A sustained increase of 16.6 per cent in fuel costs would push that annual fuel bill to roughly $225 million. It would require the company to generate at least $32 million in additional revenue to offset the higher cost, based on Financial Gleaner calculations.

He also voiced concern about road conditions in western Jamaica and their effect on service delivery.

“We continue to feel the broader operational effects of Hurricane Melissa. For example, the roadway between Ferris, Westmoreland, and Montego Bay remains in a severely deteriorated condition and is not presently suitable for travel at the standard required for passenger safety and comfort. This has delayed the resumption of service along that corridor and continues to impact overall network efficiency,” Townsend said.

luke.douglas@gleanerjm.com