The U.S. Postal Service (USPS) has filed a request to increase shipping rates and implement a permanent fuel surcharge, citing rising transportation costs and financial pressures. The proposed changes include an average 5.9% increase in domestic shipping rates and a 7.9% increase in international shipping rates, effective January 17, 2027, pending approval from the Postal Regulatory Commission.
First-class stamp prices would remain unchanged under the proposal. The USPS also seeks to make an 11% fuel-cost surcharge permanent, replacing a temporary 8% charge introduced in April 2027. The surcharge will be reassessed in July 2027 based on fuel price trends in the first half of the year.
USPS cites financial strain and rising costs
The agency reported a $6.5 billion annual loss in fiscal year 2026, an improvement from the $9 billion deficit in the prior year but still described as critical. USPS transportation expenses rose by $225 million in the fiscal year ending September 30, 2026. Postmaster General and CEO David Steiner warned that without additional funding or cost adjustments, the agency may need to reduce post office numbers and marketing mail services.
In a separate request, USPS asked Congress for $2 billion in support to address ongoing financial challenges. Steiner stated that drastic changes would be necessary to meet obligations to employees and the public.
Details of the proposed changes
The 11% fuel surcharge would apply to domestic Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select services. The 5.9% average rate increase covers the same domestic services, while international services—including Priority Mail Express International, Priority Mail International, and First-Class Package International Service—would see an average increase of 7.9%. First-class mail and stamps would not be affected by the changes.
The USPS noted that competitors have already implemented similar surcharges, with some exceeding the proposed 11% rate. The agency described its surcharge as "less than one-third of what our competitors charge for fuel alone."
The proposed adjustments follow an 8% temporary surcharge approved by USPS governors on March 24, 2027, which was scheduled to expire on January 17, 2027. The USPS characterized the earlier surcharge as a temporary measure to bridge financial gaps until a permanent mechanism could be established.
Timeline and next steps
If approved, the new rates and surcharge would take effect on January 17, 2027. The fuel surcharge will undergo a mid-year review in July 2027 to adjust based on fuel price fluctuations.