New USPS Fuel Charge to Make Mailing Packages More Expensive
The next time you send a package, get ready to pay: The US Postal Service’s governing board has approved a temporary price increase for package delivery that will take effect in one month.
On Wednesday, the USPS confirmed that it is adding 8% fees for Priority Mail, Ground Advantage and Parcel Select shipping services. The announcement comes as fuel costs continue to rise, with the national average for diesel fuel — where the agency’s long-haul trucks run — $5.38 per gallon, up from $3.76 last month, according to AAA.
USPS described the surcharge as “a time-limited price change to better align its shipping costs with the market.” But, in what may be the most frightening warning to cost-conscious Americans, the announcement also acknowledged that the surcharge would be “a bridge to a permanent way of reflecting market conditions in prices.”
Democratic officials responded quickly, citing a growing consumer impact since the war in Iran – now in its fourth week – that has sent oil and gas prices soaring around the world.
“Grocery. Gas. Now packages. Is there anything Donald Trump hasn’t made more expensive?” Illinois Gov. JB Pritzker wrote about X. “Call it what it is: The Trump Mail Tax.”
In its statement, the USPS defended the price increase, which still needs final approval before implementation.
“Transportation costs have been increasing, and our competitors have risen to the top by charging a lot,” said the statement. “This fee is less than one-third of what our competitors charge for fuel alone, so even with this change, the Postal Service continues to provide great value.”
FedEx and UPS have long charged fuel surcharges, and those costs have risen sharply since the start of the war in Iran, according to the report. The Wall Street Journal.
The USPS chose to hold stamp prices at 78 cents in January. However, it did raise other postage and delivery rates that month, including a 5.1% to 7.8% price increase for services that recently received an additional 8% charge.
Prior to the recent fuel price hike, the USPS had identified challenges including rising labor costs, coupled with long-term funding shortfalls.
The agency said higher rates are needed to restore financial stability. If approved by the Postal Regulatory Commission, the new package delivery fee will be effective from April 26 to Jan. 17.
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