The United States Postal Service (USPS) has announced plans to impose an 8% fuel surcharge on package deliveries for the first time, aiming to offset rising fuel costs. The proposal, approved by the USPS Board of Governors on Tuesday, will apply to Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select services. Letter mail and other products, including First-Class Stamps, will not be affected.
If approved by the Postal Regulatory Commission, the surcharge will take effect on April 26 and remain in place until January 17, 2027, after which USPS will reassess its long-term pricing strategy. For example, the current price for a medium Priority Mail flat-rate box of $22.95 will rise to $24.80. Regular first-class mail under one ounce will stay at $0.78.
The move mirrors practices already used by competitors such as FedEx and UPS, which have long included fuel surcharges in their pricing. Rising oil prices, driven by tensions in the Middle East, have pushed diesel prices to $5.38 per gallon, up 51% from last year, increasing delivery costs. USPS stated that its surcharge is less than one-third of what competitors charge for fuel alone, emphasising that it continues to offer value.
The surcharge comes as USPS faces significant financial challenges. Postmaster General David Steiner recently warned lawmakers that the agency could run out of money within a year without changes. USPS is also seeking approval to raise stamp prices from $0.78 to between $0.90 and $0.95. The agency's universal service obligation, requiring deliveries to over 170 million addresses six days a week, leaves 71% of routes operating at a loss, with about three in five post offices failing to cover costs.
