USPS temporarily hikes postage prices during fuel cost rise

WASHINGTON (WINK)—The U.S. Postal Service is implementing a time-limited price change that intends to better align its costs of transportation with the market.

In a statement, USPS announced that the temporary price adjustment will provide needed flexibility for the postal service by helping to ensure that the actual costs of doing business are covered, as required by Congress.

The price change, which was approved by the Governors of the Postal Service on Tuesday, is an 8% increase that would affect base postage prices on the following retail and commercial domestic competitive products: Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select. No other products or services would be affected, including First-Class Stamps.

They said that this price increase will provide a necessary bridge to a permanent mechanism to reflect market conditions in prices for competitive products that can support the postal service's ability to achieve the universal service obligation in a more financially sustainable manner going forward.

Pending favorable review by the Postal Regulatory Commission, the price change would go into effect on April 26 and would remain in place until Jan. 17, 2027. At that time, the Postal Service can determine if a different long-term approach is needed.

Transportation costs have been increasing, and competitors have reacted with a number of surcharges. The Postal Service said they have steadfastly avoided surcharges and this charge is less than one-third of what competitors charge for fuel alone, so even with this change, the Postal Service continues to offer great value in shipping with some of the lowest rates in the industrialized world.

 The Postal Regulatory Commission will review the proposed price change before it is scheduled to take effect on April 26.