USPS Announces 8% Fuel Surcharge on Packages

The United States Postal Service announced plans Wednesday to implement its first-ever fuel surcharge on package deliveries, adding an 8 percent fee starting April 26 in response to surging diesel prices driven by geopolitical tensions in the Middle East. The temporary measure, which requires approval from the Postal Regulatory Commission, will apply only to parcels and not to letter mail or first-class stamps. It is expected to remain in effect through January 2027, providing short-term relief as the agency develops a longer-term pricing strategy for competitive products.

Diesel prices have climbed to 5.38 per gallon this week, marking a 51 percent increase from a year ago and a more than 43 percent rise since last month. Officials attribute the spike to disruptions in global oil supplies amid the ongoing Iran war, which has unsettled energy markets and prompted similar adjustments by private carriers. FedEx and UPS, for instance, have long applied fuel surcharges ranging from 25 to 28 percent for ground and air services and recently raised them further to offset the volatility.

The surcharge represents a departure from the Postal Service's traditional approach, which has...