WASHINGTON — The U.S. Postal Service (USPS) has filed a request with the Postal Regulatory Commission (PRC) for a time-limited price adjustment designed to better align transportation costs with current market conditions. This temporary change will provide the Postal Service with additional flexibility by ensuring that the actual costs of operations are recovered, as mandated by Congress.
“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the USPS said in a statement. “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.”
Although temporary, the price adjustment will serve as an important bridge to a permanent pricing mechanism that reflects market conditions for competitive products. This approach supports the Postal Service’s ability to fulfill its universal service obligation in a more financially sustainable manner over the long term.
The notice comes as Postmaster General David Steiner has warned Congress that the Postal Service, which has seen letter volumes plummet, will run out of cash within a year unless lawmakers lift a decades-old cap and allow the independent agency to borrow more money. Steiner favors other reforms as well, including the authority to raise postage prices high enough to cover losses.
The planned price change, which was approved by the Governors of the Postal Service on March 24, 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. Pending favorable review by the PRC, the price change would go into effect at midnight Central Time on April 26 and would remain in place until midnight Central Time on Jan. 17, 2027. At that time, the Postal Service can determine if a different long-term approach is needed.
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.
