The U.S. Postal Service is planning to increase prices on various package shipping services by 5.9% on average starting Jan. 17, 2027, in addition to implementing a permanent fuel surcharge, the agency announced Thursday.
The 5.9% increases would apply to USPS Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select services domestically. That increase amount matches the averages of FedEx and UPS' upcoming rate hikes, and is lower than several of the rate bumps the Postal Service rolled out at the beginning of this year.
Meanwhile, the fuel surcharge is based on the 8% price hike the Postal Service installed on several services in April to cover surging transportation costs. The 8% increase — which is slated to last through Jan. 17 — will be converted to an 11% total surcharge, with the additional 3% stemming from "the recent further elevation of fuel prices," per the agency.
"The surcharge, which will not impact international products at this time, will be reevaluated in July 2027 based on fuel prices in the first half of 2027," the Postal Service said.
The fuel surcharge rate will be static in January, but the agency eventually intends to adjust the rate on a weekly basis based on average fuel prices reported by the U.S. Energy Information Administration, per a Postal Regulatory Commission filing. That approach, initially unveiled by the Postal Service in October, is similar to the one FedEx and UPS take for their fuel surcharges.
"Customers can begin to make necessary programming changes to implement a dynamic fuel surcharge now, and we intend to authorize appropriate rate and classification changes for the dynamic fuel surcharge later in 2027," according to the filing.
The Postal Service is also planning to increase mail and shipping rates by 7.9% on average for Priority Mail International, Priority Mail Express International, First-Class Package International Service and International Priority Airmail. The pricing changes have been approved by the agency's board of governors and will be reviewed by the Postal Regulatory Commission before taking effect.
"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," the announcement said.
The Postal Service posted a $6.5-billion net loss in fiscal year 2026, but price increases benefited the agency's financial results and softened the blow of reduced demand. Revenue in the Postal Service's shipping and packages category increased 5.1% year over year in 2026, despite a volume decline of 5.3% YoY.
"Of course, our revenue picture is tied to our improved service performance and effective pricing… and so, as service and pricing strategies improve further, we hope to achieve commensurate revenue gains," Postmaster General and CEO David Steiner said in remarks during a board of governors meeting on Tuesday.
