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USPS says it will make its postage fuel surcharge permanent in 2027 as diesel prices soar
CBS News • • business
Key Points:
- The U.S. Postal Service (USPS) announced it will permanently raise postage rates in 2027, making an 8% fuel surcharge introduced in April permanent and adding a 3% overall price increase, approved by the USPS Board of Governors.
- These changes, effective January 17, 2027, aim to help the USPS remain competitive and address ongoing financial challenges, with a surcharge reevaluation planned for July 2027 based on fuel prices.
- Domestic shipping rates for Priority Mail services will increase by an average of 5.9%, while international shipping rates will rise by about 7.9%.
- The rate hikes come amid sharply higher diesel prices, which have more than doubled in a year due to global oil market disruptions linked to the war in Iran.
- The USPS, a self-financed agency facing long-term financial struggles and declining mail volume, reported a $6.5 billion loss for fiscal year 2026 and is pursuing a 10-year plan to reduce costs and restore profitability.
