WASHINGTON - The U.S. Postal Service is asking regulators to approve an 11% fuel surcharge on domestic priority mail and package deliveries, set to take effect in January. The cash-strapped agency said the move is necessary to address rising fuel costs.
The Postal Service must obtain approval from the Postal Regulatory Commission before implementing the increase. The proposed surcharge would replace a temporary 8% surcharge that was put in place in April.
In a statement, the Postal Service said it does not plan to raise the price of first-class stamps in January. The price of a first-class stamp increased in July from 78 cents to 82 cents.
The agency also disclosed this week that its transportation expenses for the 12 months ending Sept. 30 rose by $225 million due to higher fuel costs. That figure underscores the pressure that energy prices are placing on the Postal Service's operating budget.
The request comes as the Postal Service continues to face financial challenges. The proposed surcharge is aimed at recovering some of the increased transportation costs without affecting first-class mail prices at this time.
The Postal Regulatory Commission will review the proposal and determine whether the increase can proceed. The timing of the commission's decision was not specified.
If approved, the 11% surcharge would apply to domestic priority mail and package deliveries starting in January. The change would mark an increase from the current 8% surcharge.
The Postal Service's transportation expenses are a significant component of its overall costs, and fuel prices directly influence those expenses. The agency's request highlights the ongoing sensitivity of its operations to energy markets.
While the proposed surcharge targets priority and package services, first-class mail prices will remain unchanged in January, according to the Postal Service's statement.
The outcome of the regulatory review will determine whether the surcharge takes effect as planned. The Postal Service did not provide further details on the expected timeline for the commission's decision.