The U.S. Postal Service is looking to impose its first surcharge on packages to cover the rising cost of fuel as the conflict in the Middle East strains energy prices.
The 8% surcharge on packages, not mail, will begin in April and is expected to phase out in January, anonymous sources told The Wall Street Journal.
This comes after Postmaster General David Steiner told lawmakers on Thursday that the agency is almost financially underwater and that the American public is unaware that the postal service is at a “critical juncture.”
USPS has been dealing with financial struggles for years, having lost more than $100 billion since 2007, including a $9 billion loss in 2025 due to a drastic reduction in mail volume.
Mr. Steiner said it faces an imminent financial collapse, warning that the agency will exhaust its cash reserves within 12 months, meaning it could no longer deliver mail.
USPS also wants to raise stamp prices from 78 cents to between 90 and 95 cents, its eighth increase since 2021.
Mr. Steiner asked lawmakers to consider lifting regulatory restrictions on USPS’ ability to raise prices.
FedEx and United Parcel Service have imposed fuel surcharges for years and raised their surcharges recently as the Iran war strains the flow of oil through the Strait of Hormuz.
The two companies said they update their fuel surcharges weekly, pursuant to prices published by the Department of Energy.
Diesel prices are up 51% from the previous year, reaching $5.38 a gallon this week.
• Mary McCue Bell can be reached at mbell@washingtontimes.com.
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