Post office set to add 8% surcharge on packages in first-ever fuel fee – UK Times

The United States Postal Service is planning to introduce its first-ever surcharge on package deliveries to offset surging fuel costs.

The proposal, approved by the USPS Board of Governors on Tuesday, is an 8 percent increase that would apply to Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select, according to a USPS news release shared Wednesday with The Independent.

Letter mail, nor other products or services, including First-Class Stamps, would be affected.

If approved by the Postal Regulatory Commission, the price change would take effect April 26 and remain in place until January 17, 2027, when USPS will reassess its long-term pricing strategy.

The current shipping price for an item in a medium Priority Mail flat-rate box is $22.95, while will rise to $24.80. the Wall Street Journal reports.

Regular mail under one ounce that uses a first-class mail stamp remains unchanged at $0.78.

While the move would be a first for the USPS, it’s nothing new in the shipping world. Carriers like FedEx and UPS have long used fuel surcharges, along with a variety of other fees, as standard parts of their pricing. Lately, those charges have been climbing, as rising oil prices tied to ongoing tensions in the Middle East push delivery costs higher. Fuel costs have surged sharply, with diesel prices reaching $5.38 per gallon this week, up 51 percent from the same period last year, adding further strain to delivery networks that depend heavily on transportation.

“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” a USPS news release reads. “We have steadfastly avoided surcharges and this charge is less than one-third of what our 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 time-limited price change is consistent with industry practices and will support the Postal Service’s ability to continue achieving its public service mission, providing a nationwide, integrated network for the delivery of mail and packages at least six days a week, in a cost-effective and financially sustainable manner over the long term, just as the U.S. Congress has intended,” the release states.

The surcharge proposal comes as the Postal Service continues to grapple with longstanding financial challenges. David Steiner, the newly appointed Postmaster General, recently warned lawmakers that the agency could run out of money within a year without significant changes, the Journal reports. Last week, he urged lawmakers to consider easing regulatory limits that prevent the Postal Service from raising prices.

USPS is also seeking approval to raise stamp prices from 78 cents to between 90 and 95 cents, its eighth increase since 2021.

A major factor in the agency’s financial strain is its universal service obligation, which requires deliveries to more than 170 million addresses six days a week. According to USPS, that mandate leaves roughly 71 percent of delivery routes operating at a loss, and about three in five post offices fail to cover their operating costs.