Postal Service seeks first-class mail stamp price hike to 82 cents

The U.S. Postal Service, citing what it called a “severe financial crisis,” on Thursday announced a proposed set of price hikes across its mail products, which would include a four-cent increase on First-Class Mail Forever stamps.

The increases, if approved, would lead to a first-class stamp costing 82 cents, effective July 12.

The agency’s proposal to the Postal Regulatory Commission would increase costs to mail letters and postcards by 4.8% if approved.

The proposal comes weeks after the Postal Service proposed instituting an 8% fuel surcharge for package and express mail deliveries to help offset rising fuel costs amid the Iran war on top of its dire financial situation.

USPS said Thursday that there is a “severe financial crisis facing the Postal Service and continued rising operational costs.”

“The Postal Service is using all available tools, including available regulatory pricing authority, to ensure we can continue to fulfill our universal service obligation and serve the American public,” the agency said in a press release.

The agency also said it will suspend employer contributions to Federal Employees Retirement System annuities to be able to continue making payroll, paying suppliers and delivering the mail, according to The Associated Press.

Postmaster General David Steiner in March told the House Oversight Committee that at current spending levels, USPS would run out of cash “in less than 12 months.”

Despite being a federal entity, the Postal Service does not receive tax dollars and instead relies on the sale of its products and services to fund operations.

A sharp decline in mail volume has contributed to the financial crunch. The Postal Service has seen a its volume of mail decrease by more than 104 billion pieces of mail per year since 2006, which equates to around $81 billion at the current stamp price of 78 cents, Steiner said at the hearing in March.