U.S. Postal Service seeks 8% fuel surcharge for package deliveries
CNBC • • business
Key Points:
- The U.S. Postal Service is seeking approval to impose a temporary 8% fuel surcharge on package and express mail deliveries due to rising transportation costs driven by higher oil prices linked to the Iran war.
- If approved, the surcharge would begin on April 26 and remain in effect until January 17, 2027, affecting Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select products, but not first-class stamps or other mail services.
- Oil prices have surged over 40% since February 28, following U.S. and Israeli attacks on Iran, prompting major shippers like FedEx and UPS to increase their fuel surcharges significantly.
- The Postal Service emphasized that this surcharge is a temporary measure to cover actual business costs and is less than one-third of the fuel surcharges charged by competitors, maintaining competitive shipping rates.
- The Postal Regulatory Commission has yet to comment on the Postal Service's surcharge request.
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