United States Postal Service to add 8% fuel surcharge on packages
The temporary price increase, pending regulatory approval, would cover Priority Mail and other popular shipping products starting April 26
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The U.S. Postal Service submitted a request to the Postal Regulatory Commission this week for a temporary 8% surcharge on select package products, pointing to escalating fuel and transportation expenses tied to the conflict in Iran.
The surcharge is set to start on April 26 and last until Jan. 17, 2027, if the commission approves it. After that, the agency will consider whether it needs to make permanent changes to its pricing. The increase would affect Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select. First-Class Stamps and other services would not be included, according to the agency.
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The Guardian reported the surcharge would mark the USPS's first on packages. FedEx $FDX and UPS have both added fuel surcharges in response to rising energy costs, but the USPS said it had resisted following suit until now. "This charge is less than one-third of what our competitors charge for fuel alone," the USPS said in a statement, describing the adjustment as a "necessary bridge" to a more financially sustainable operating model.
According to the Guardian, energy prices have risen sharply in the weeks following a joint U.S.-Israeli military strike against Iran in late February. Per-barrel crude prices have climbed as much as 40% year-to-date, while the national average for diesel has reached $5.37 per gallon — compared with $3.75 just a month ago.
The announcement comes after Postmaster General David Steiner told lawmakers the agency faces the prospect of running dry financially before next year is out. Steiner has also pushed for legislative changes that would give the agency more room to increase postage rates and access additional funds, according to ABC News.
The New York Times reported the agency closed the opening quarter of fiscal 2026 with losses totaling nearly $1.3 billion. Those figures come on top of net losses of $9.5 billion in fiscal year 2024 and $9 billion in fiscal year 2025, according to The Times. The postal service's delivery footprint spans some 168 million addresses throughout the U.S.