The U.S. Postal Service on Thursday announced plans to permanently increase postage rates next year as it contends with rising fuel expenses.
Beginning in 2027, the USPS will make permanent an 8% temporary surcharge on certain postage services that was introduced in April. The agency will also add a separate 3% rate increase, resulting in an overall hike of about 11%. The USPS Board of Governors approved the changes, according to the agency.
The new prices are scheduled to take effect Jan. 17, 2027.
“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,” the agency said in a statement.
The Postal Service plans to review the surcharge in July 2027, using fuel costs recorded during the first six months of the year to determine whether it should remain in place.
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Domestic shipping services will also become more expensive, with average increases of 5.9% for Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select.
International shipping prices are expected to climb by an average of 7.9%. The increase will affect Priority Mail Express International, Priority Mail International, First-Class Package International Service and International Priority Airmail.
The USPS is facing the same financial pressures affecting other delivery companies, including a steep rise in diesel costs this year. Prices have surged alongside global oil markets, which have been pushed higher by the war in Iran. AAA reported that the national average price of diesel reached $6.10 per gallon Thursday, up from $3.76 a year earlier.
The self-funded Postal Service has dealt with mounting expenses and declining mail volumes for years. On Tuesday, the agency reported a $6.5 billion loss for fiscal 2026, an improvement from the $9 billion deficit recorded the previous year. In an effort to curb losses, the USPS has adopted a 10-year plan focused on cutting costs and returning the agency to profitability.
Congress established the U.S. Postal Service in 1775, with Benjamin Franklin appointed as its first postmaster general. Today, the independent agency is overseen by the USPS Board of Governors, which includes the postmaster general and deputy postmaster general.
