Absent Congressional or Court action to make the existing exigent surcharge for Market Dominant products and services part of the rate base, the Postal Service™ will be required to reduce prices for Forever stamps and other mailing products, effective Sunday, April 10.
The price of mailing a 1-ounce First-Class Mail letter will be 47 cents, down from 49 cents.
Letters with additional ounces will drop to 21 cents (from 22 cents), letters to international destinations will fall to $1.15 (from $1.20) and postcard prices will be 34 cents (from 35 cents).
Commercial prices will also decrease. The price reductions are required because the Postal Regulatory Commission has ordered USPS to reverse a 4.3 percent exigent surcharge that has been in place since January 2014.
This may worsen the Postal Service’s financial condition by reducing revenue and increasing net losses by approximately $2 billion per year.
“The exigent surcharge granted to the Postal Service only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone,” PMG Megan J. Brennan said last month. “Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition.”