USPS Asks Regulators to Make Package Fuel Surcharge Permanent at 11%, Effective Jan. 17

The U.S. Postal Service said Thursday, Nov. 12, that it will make its temporary 8% shipping surcharge permanent and add 3 percentage points to it, for an 11% fuel-related charge. The USPS Board of Governors approved the move, the agency said. The new pricing is set to take effect Jan. 17, 2027.

The agency has filed the proposal with the Postal Regulatory Commission, which must approve the price changes.

What changes on Jan. 17

The 8% surcharge was introduced in April and was scheduled to expire Jan. 17, the same day temporary holiday shipping surcharges end. Instead, it stays, at a higher rate.

USPS will reevaluate the surcharge in July 2027 based on fuel prices in the first half of the year.

The agency also announced separate list-price increases for shipping products:

• Domestic: an average of 5.9% for Priority Mail, Priority Mail Express, USPS Ground Advantage and Parcel Select.
• International: an average of 7.9% for Priority Mail Express International, Priority Mail International, First-Class Package International Service and International Priority Airmail.

First-class stamps are not part of this round. They rose from 78 to 82 cents in July, and USPS does not plan another increase now.

The fuel math

USPS blames diesel. AAA put the national average at $6.10 per gallon on Thursday, up from $3.76 a year ago. Global oil prices have climbed with the war in Iran.

USPS said higher fuel costs added $225 million to its transportation expenses in the 12 months ending Sept. 30, according to Reuters.

In a statement, the agency said: "The USPS governors believe these new rates will keep the Postal Service competitive while providing the agency with much needed revenue as it continues to struggle with financial issues."

When USPS announced the temporary charge in March, it described it as a bridge to a permanent mechanism, according to the trade site Value Added Resource. The goal was to bring USPS pricing closer to UPS and FedEx, which already charge fuel surcharges.

Still losing billions

On Tuesday, USPS reported a $6.5 billion net loss for fiscal 2026, an improvement from $9 billion the year before. The agency is self-financed and has been running a 10-year plan to cut expenses and restore profitability.

Since 2007, USPS has reported net losses of more than $120 billion. First-class mail volume, its most profitable product, has fallen to its lowest level since 1965.

The same day as the loss report, USPS asked Congress for $2 billion in support and reimbursements. It warned lawmakers of possible deep cuts to retail post offices and other services without help. The agency says the money would cover unfunded requirements Congress has imposed on it.

USPS is raising prices on customers who have alternatives while also asking taxpayers for cash. Package volume is declining, according to Value Added Resource, even as shipping revenue rose.

Sellers face another round

The customers most exposed are online sellers. Value Added Resource reported that published Ground Advantage rates rose an average of 7.8% in January, then took the 8% transportation charge in April and further competitive rate changes in July. The January 2027 changes would be the latest in a year of frequent adjustments.

The outlet also reported that USPS pulled a Fuel Surcharge Implementation FAQ two days after publishing it, without explanation, and did not respond to requests for clarification. According to the outlet, the full regulatory filing, which became public later on Nov. 12, shows USPS still intends to introduce weekly fuel-based adjustments at a later date and is urging customers to begin the programming changes now.

The surcharge will initially stay fixed at 11%. USPS has not announced a start date for weekly adjustments.

What happens next

The Postal Regulatory Commission has to rule on the filing before Jan. 17. USPS will reassess the surcharge in July 2027. Congress has yet to respond to the $2 billion request.