WASHINGTON — The United States Postal Service announced plans to raise its prices for the 2022 holiday season, but said that the rate adjustment would only be temporary.
USPS said in a news release that the rate hike would be similar to ones levied in previous years, and will be used to cover extra handling costs during the holiday season.
The planned pricing, which was approved Aug. 9, would raise prices on Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select and USPS Retail Ground, USPS said in its news release. International rates will not be impacted. If approved, the new pricing would be in effect from 12 a.m. Central on Oct. 2 and stay in place until 12 a.m. Central Jan. 22, 2023.
Postmaster General Louis DeJoy told the Postal Service Board of Governors Tuesday that USPS could lose up to $70 billion over the next 10 years, CBS News reported. The holiday price increase will add more than $1 billion to the USPS’ planned budget.
The price increase will vary according to the weight of the package and the method by which the package is sent, UPI reported. Retail customers will see increases ranging from 30 cents to more than $6, depending on the weight of the parcel and the distance it is being sent, with heavier packages sent coast-to-coast using First-Class mail costing $5.85 more, The Washington Post reported.
USPS was not eligible for taxpayer funding previously, but its finances were restructured this year to relieve $107 billion in obligations, The Washington Post reported. The agency relies on postage sales to fund its operations.
DeJoy told the Postal Service Board of Governors that he will be recommending another price hike in January, CBS News reported.
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