USPS to Impose Temporary Fuel Surcharge

The U.S. Postal Service (USPS) announced on Wednesday its plan to impose a temporary 8% fuel surcharge on select package services starting April 26, pending approval from the Postal Regulatory Commission. The surcharge will apply to Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select services and is set to remain in place until January 17, 2027.

The move comes as rising fuel costs due to the Iran war have significantly impacted transportation expenses. According to multiple reports, the average U.S. gas price has reached nearly $4 per gallon, while diesel prices have surged to an average of $5.37 per gallon, up from $3.75 a month ago.

The USPS stated that this temporary price adjustment is necessary to cover actual costs of doing business and ensure financial stability. The agency emphasized that it has avoided surcharges in the past and that its competitors charge significantly higher fuel surcharges. Despite the increase, the USPS maintains that it continues to offer competitive shipping rates.

The announcement comes as the USPS faces substantial financial challenges. According to CBS News, the agency reported a $9 billion loss in 2025 and is at risk of running out of cash within the next year if Congress does not change borrowing limits. Postmaster General David Steiner has also expressed interest in raising first-class stamp prices to between 90 cents and 95 cents from the current rate of 78 cents.

The USPS's fuel surcharge is lower than those issued by competitors such as FedEx and UPS, which have also increased their added fuel fees following recent geopolitical events. The conflict has led to a significant surge in oil prices, with Brent crude up more than 55% in March alone.