USPS adds permanent postage surcharge, citing higher fuel costs
The U.S. Postal Service announced Thursday it will permanently raise postage rates next year, including an 8% fuel surcharge and additional 3% price increase, effective January 17, 2027.
The USPS Board of Governors approved the 11% rate hike, which will also affect domestic shipping services with an average 5.9% increase for Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select. International rates will rise by an average of 7.9% for various international services.
Rising Fuel Costs
Like other shipping companies, the USPS has faced sharply higher costs this year due to soaring diesel prices, which have spiked alongside global oil costs driven up by the war in Iran. The national average price of diesel was $6.10 per gallon on Thursday, up from $3.76 a year ago, according to AAA.
Financial Struggles
The USPS, which is self-financed, has for years struggled with high costs and dwindling mail volume. The agency reported a $6.5 billion loss for fiscal year 2026, down from a $9 billion loss last year. To address these issues, the Postal Service has implemented a 10-year plan to reduce expenses and restore profitability.
The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with much needed revenue as it continues to struggle with financial issues.
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