USPS adds 8% surcharge to cover shipping costs, fuel prices rise
The average cost of a gallon of gas on Long Island is up 17 cents from last week and $1.02 from this time last month, according to AAA.
news 12
Corrections and clarifications: A previous version of this article incorrectly stated when USPS increases shipping rates. The correct date is April 26, 2026.
People who mail packages through the U.S. Postal Service could see their rates go up starting in April, as the U.S. Postal Service may temporarily increase shipping rates.
On March 25, the Postal Service announced it would increase the cost of shipping parcels by 8% for a limited time to “adjust shipping costs to the market,” according to a news release.
This price increase applies to the following products:
- priority mail express
- priority mail
- USPS Ground Advantage
- parcel select
First-class postage stamps and other Postal Service products are not affected. The price changes could take effect at midnight on Thursday, April 26, pending approval by the Postal Regulatory Commission. The price increase will continue until January 17, 2027.
Why is USPS raising prices?
Transportation costs are rising, and the temporary price increase “will support the Postal Service’s ability to continue to achieve its public service mission of providing a nationally integrated network that delivers mail and packages at least six days a week in a cost-effective and fiscally sustainable manner over the long term, as intended by the U.S. Congress,” the Postal Service said in a news release.
While higher fuel prices may contribute to higher transportation costs, other factors such as increased vehicle and transportation maintenance, insurance costs, and changing market conditions in logistics, shipping, and trucking also contribute to the proposed increases, the Postal Service said.
Gasoline prices are rising
The price change is possible because oil, gasoline and diesel prices have soared since the US and Israel launched attacks on Iran.
As of Tuesday, March 24, the national average price for gasoline was $3.98 per gallon, up 10 cents over the week and nearly $1 more than a month ago, according to AAA.
Will the Postal Service run out of money?
The Postal Service has warned it could run out of funding by 2027 without action from Congress.
Postmaster General David Steiner, who took office in July 2025, told Reuters and The Associated Press in early March that the agency could struggle to pay vendors and employees unless Congress lifts a $15 billion statutory debt limit.
“If nothing changes, we will run out of cash within 12 months,” Steiner told Reuters.
Postal Service discusses raising stamp prices
Steiner told lawmakers on March 17 that the price of first-class stamps could rise by 12 to 17 cents, from 78 cents to 90 to 95 cents per stamp. He said the increase “will largely resolve the controllable losses.”
No stamp increase has been approved and customers can still purchase a sheet of 20 stamps for $15.60 at the post office or online.
President Trump promotes government agency overhaul
Last year, President Donald Trump said he was considering merging the Postal Service, now an independent agency, into the Department of Commerce, USA TODAY reported. In that case, the agency would come under the authority of the executive branch.
“We want to have a post office that works well and doesn’t lose a lot of money, and we’re looking at making that happen,” President Trump said at the time.
Millions of people rely on USPS
The Postal Service delivers mail and packages to millions of addresses nationwide, including rural areas often not served by private carriers, according to the Government Accountability Office. The law requires the Postal Service to provide “national postal service,” meaning delivery to every address in the country six days a week, but GAO argues that this requirement comes at a cost.
The Postal Service also plays an important role in public health and elections. A 2020 study found that the agency delivered approximately 1.2 billion prescriptions in 2019, making it an essential service for communities that rely solely on the Postal Service. During the 2024 election cycle, the Postal Service processed more than 99 million ballots, according to a news release.
President Trump voted by mail in Florida’s 2026 special election despite calling mail-in voting “fraudulent” and claiming it would lead to widespread voter fraud, USA TODAY reports. Voting rights advocates warn that such claims could undermine public trust in the Postal Service.
Contributors: Fernando Cervantes, Kinsey Crowley, Trevor Hughes, america today;ReutersThis story has been updated with new information.
Julia Gomez is USA TODAY’s trends reporter, covering popular toys, scientific research, natural disasters, holidays, and trending news. Connect with her on LinkedIn ×Instagram, TikTok: @juliamariegz or email jgomez@gannett.com..
