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Postal Service to make fuel surcharge permanent in 2027

USPS says the hike would help cover higher fuel and transportation costs after shipping expenses rose $225 million last year.

  • On Thursday, the United States Postal Service announced it is seeking approval for an 11% fuel surcharge on domestic Priority Mail and package deliveries, intending to make the fee permanent in January 2027.
  • Sharply higher diesel prices, driven by the war in Iran, spiked alongside global oil costs, forcing the agency to increase the surcharge from the 8% fee introduced in April.
  • Reporting a $6.5 billion loss for fiscal year 2026, the Postal Service noted that transportation expenses rose by $225 million due to rising fuel costs.
  • While the agency awaits approval from the Postal Regulatory Commission, Postmaster General David Steiner confirmed it is not planning to increase First-Class stamp prices in January.
  • Following the announcement, shares of competitors UPS Inc. and FedEx Corp. slipped less than 1% on Thursday, as the agency continues implementing a 10-year plan to restore profitability.
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U.S. Postal Service shipping prices to surge in 2027: What to expect

The increases come as gas prices have reached record highs amid the war in Iran.

·Saint Petersburg, United States
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ArcaMax Publishing broke the news on Thursday, November 12, 2026.
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