USPS to make postage fuel surcharge permanent in 2027 amid rising diesel costs
USPS will raise postage rates permanently next year to offset higher fuel prices and financial losses.
The U.S. Postal Service announced it will make an 8% fuel surcharge on select postage prices permanent in 2027, along with an additional 3% price increase, according to CBS News Bay Area.
This decision comes as diesel prices have surged, with the national average reaching $6.10 per gallon, up from $3.76 a year ago, driven by global oil costs and geopolitical factors.
The USPS Board of Governors approved an overall 11% postage hike to help the agency remain competitive and generate needed revenue amid ongoing financial challenges.
Domestic shipping services like Priority Mail and Priority Mail Express will see an average cost increase of 5.9%, while international shipping rates will rise by about 7.9%.
The Postal Service reported a $6.5 billion loss for fiscal year 2026, an improvement from the previous year’s $9 billion loss, and is pursuing a 10-year plan to reduce expenses and restore profitability.
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