USPS to impose 8% fuel surcharge on packages
For the first time in its history, the United States Postal Service will impose a surcharge on package deliveries tied to rising fuel costs. The agency says the 8% fee will take effect April 26 and apply to packages only, not letters.
Transportation costs are increasing
Calling it a “transportation-related, time-limited” price change, USPS said fuel and shipping costs have continued to climb.
“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the agency said. “We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone.”
The surcharge will apply to Priority Mail Express, Priority Mail, Ground Advantage and Parcel Select.
The Postal Regulatory Commission, which oversees USPS rates and fees, will review the proposal.
What it means for customers
The surcharge will raise shipping costs across common services. A Priority Mail Small Flag Rate Box, currently $12.65, would increase by about a dollar. A medium flat-rate box would rise from $22.95 to about $24.79, while shipping a large box would increase by roughly $2.50 to about $34.
USPS relies on postage and service fees to fund operations, including a six-day-a-week delivery.
Fuel prices driving the change
Fuel costs have climbed sharply. According to AAA, the national average for regular gasoline is $3.98 per gallon, up from $2.98 a month ago. Diesel now averages about $5.37 per gallon, compared with $3.75 a month earlier.
The Wall Street Journal reports competitors FedEx and UPS have already raised their fuel surcharges in recent weeks as oil prices have climbed amid the war in Iran.
Ongoing financial pressure
USPS continues to face significant financial strain. Postmaster General David Steiner recently told Congress the agency will run out of cash within a year without changes.
The Postal Service posted a $9 billion loss in 2025 and remains in the middle of a multi-year restructuring effort that began in 2021. NPR reported those changes have not yet reduced losses enough to stabilize finances.
Fuel policy shifts aim to ease costs
Separately, as Straight Arrow News reported, the Environmental Protection Agency issued a temporary emergency waiver allowing nationwide sales of E15 gasoline during the summer months. E15 contains 15% ethanol and is typically cheaper than standard fuel blends.
The EPA is also easing restrictions on E10 sales. Officials say the move is intended to increase supply and help limit price increases at the pump.
EPA administrator Lee Zeldin said the action is consistent with the Clean Air Act and aimed at reducing costs for consumers.
The expanded availability of E15 and E10 begins on May 1.
Ella Rae Greene, Editor In Chief
