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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.