The U.S. Postal Service will begin levying a fuel surcharge on various package shipping services starting in January 2027, the agency announced Monday.
The fuel fee will apply to USPS Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select shipments. Negotiated contracts "may have customized language" in terms of fuel surcharge applicability, according to the Postal Service.
The surcharge, which covers domestic shipments only, will update on a weekly basis based on diesel and jet fuel prices listed on the U.S. Energy Information Administration's website. The Postal Service said the fuel surcharge will be calculated as a percentage of the base postage amount.
The specific percentage will be published three to five days prior to implementation for shipments in which diesel applies, and three to four days before implementation for jet fuel-applicable shipments.
"Shippers will receive updates electronically, through API or other means, for current/upcoming percentages to be applied, along with effective dates," the agency said. "Historical data will be posted publicly."
The fuel surcharge marks another way the Postal Service is aligning closer to FedEx and UPS' pricing practices, as both companies levy their own fees based on diesel and jet fuel prices. As the Iran war and Strait of Hormuz disruptions have driven up fuel costs, these surcharges have contributed to elevated delivery prices for shippers throughout 2026.
In April, the Postal Service responded to surging transportation costs by installing an 8% price hike on several services through Jan. 17, 2027. The agency said in an announcement that "this charge is less than one-third of what our competitors charge for fuel alone" and would "provide a necessary bridge to a permanent mechanism" for meeting its universal service requirement in a financially sustainable way.
The temporary price increase helped the Postal Service increase revenue for its package shipping services by 7.7% year over year in Q3, even though volume dropped 3.4% YoY in the category. That was a positive sign in a quarter that saw the agency post yet another net loss.
"All of the statistics and results show that we have yet to cross the point that we should be changing our pricing strategy, and that we have more price to take in the marketplace," Postmaster General David Steiner said in a USPS board of governors meeting in August. "It would be financially irresponsible of us not to do so."
