USPS to Increase Shipping prices, Establish Permanent Fuel Surcharge

The U.S. Postal Service is moving to raise and make permanent its fuel surcharge, which the agency introduced for the first time earlier this year.

The fuel surcharge will increase to 11% from 8% starting in January, the USPS said in a statement Nov. 12. Certain domestic shipping services also will increase by an average of 5.9%. That adjustment is in line with the typical annual rate changes that other large parcel carriers have announced for the year ahead.

The USPS faces a dire financial situation due to its massive operational costs and waning mail volume. Postmaster General David Steiner has said the agency could run out of money as soon as February and has halted discretionary spending and certain retirement contributions to stave off a liquidity crisis. He has also asked Congress for help solving some of the agency’s structural financial issues.