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The US Postal Service wants to raise the price of stamps to 63 cents According to Reuters



© Reuters. The United States Postal Service (USPS) mailbox is seen in Manhattan, New York City, U.S., May 9, 2022. REUTERS / Andrew Kelly / File Photo

By David Shepardson

WASHINGTON (Reuters) – The United States Postal Service (USPS) on Friday said it wants to raise the price of first-class Forever postage stamps from 60 cents to 63 cents to account for the cost of inflation.

USPS has filed a notice of the proposed rate hike with the Postal Regulatory Commission and wants the increase to go into effect on January 22. U.S. Postal Service General Manager Louis DeJoy said in August that Inflation will cause USPS costs to exceed the 2022 budget plan “by more than $1 billion.”

There will be no change to a single letter and fixed additional prices but other rates will increase including the cost of an international letter increasing 5 cents to $1.45.

USPS says total first-class mail rates will increase 4.2%.

DeJoy said the USPS has for years been unable to charge enough fees for packages and mail.

Struggling with dwindling mail volumes despite having to send to a growing number of addresses, USPS reported a net loss of more than $90 billion from 2007 through August when it recorded a one-time gain. cashless times of $59.6 billion after President Joe Biden signed the bailout. law into law.

DeJoy launched a reform plan in March 2021 that aims to eliminate $160 billion in anticipated losses over the next decade.

DeJoy said that despite the reforms, losses will still amount to $60 billion to $70 billion over the next 10 years — and USPS must cut $35 to $40 billion in operating costs.

“I have to use pricing,” DeJoy said in July, adding that he thinks the mailers “have had a deal for the last 10 years and we’re charging them.”

The USPS increased the price of first-class stamps in July from 58 cents to 60 cents after raising the price by 3 cents in August 2021.

USPS is getting $3 billion from Congress to promote electric and charging vehicle purchases. In July, USPS said it plans to buy at least 25,000 EVs.

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