USPS reportedly plans its first-ever fuel surcharge on packages
Fox Business • • general
Key Points:
- The U.S. Postal Service plans to introduce an 8% fuel surcharge on package deliveries starting in April, marking the first time the agency has imposed such a fee, with a phase-out expected by January 2027.
- The surcharge will apply only to packages, not letter mail, aligning USPS with FedEx and UPS, which have long had fuel surcharges that recently increased due to rising oil prices amid Middle East conflicts.
- Diesel prices have surged over 43% in the past month, significantly impacting USPS operating costs amid the agency's ongoing financial struggles and a forecasted cash shortage within a year without reforms.
- Postmaster General David Steiner has urged Congress for higher stamp prices, increased borrowing authority, and other reforms such as pension and workers' compensation changes to address USPS's financial crisis.
- Proposed cost-cutting measures include reducing mail delivery to five days a week and closing small post offices, potentially saving billions annually, though Steiner acknowledged these options may face public and congressional resistance.
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