A proposed surcharge on U.S. Postal Service (USPS) package deliveries is now under formal review, with regulators confirming that price increases on these services are not subject to the same limits that apply to stamps and basic mail.
The Postal Regulatory Commission said it began reviewing the request immediately after the United States Postal Service filed notice on March 25, setting in motion a process that could result in the approval of new delivery fees within weeks.
“The Commission begins its review of proposed price changes from the day a notice is filed. In addition, the Commission will imminently issue a Notice and Order establishing a docket for consideration of the proposal, requesting public comment, and establishing a comment deadline,” the regulator said in an exclusive response to The Kenya Times.
It added that a formal Notice and Order establishing a public comment period will be issued and published in the Federal Register.
What regulators will — and won’t — consider
At the center of the review is whether the proposed surcharge complies with federal law governing so-called “Competitive products,” which include package and express delivery services.
The Commission said its role is limited to verifying that the proposed rates meet specific financial requirements.
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These include ensuring that each product covers its attributable costs, that traditional mail products do not subsidize competitive services, and that they contribute appropriately to the agency’s overall institutional costs.
“The Commission’s role is thus to verify that the proposed rates are sufficiently high to satisfy these requirements,” it said.
Notably, the regulator made clear that consumer impact is not a determining factor in approving or rejecting such price changes.
“The impact on consumers and small businesses is not a basis on which the Commission has authority to deny a proposed change in rates for Competitive products. Instead, the Commission considers the views of the users of a product and small business concerns when determining which products are classified as Market Dominant and which products are classified as Competitive.”
Unlike stamps, letters, and postcards — classified as “Market Dominant” products — package delivery services do not face a regulatory cap on price increases.
Under federal rules, increases in Market Dominant products are limited by a pricing formula. No such limit exists for Competitive products.
That means any approved surcharge could be larger and more flexible, depending on cost pressures facing the Postal Service.
While the Commission said it will consider public comments submitted during the review process, those views do not directly determine the outcome under current law.
Small businesses in focus amid Postal Service fee hike
The proposed surcharge would apply to services widely used by small businesses, online sellers, and individuals shipping packages.
These include Priority Mail, Priority Mail Express, and other parcel services that underpin e-commerce and side businesses across the United States.
Because these services fall under the Competitive category, they operate in a pricing environment closer to private carriers, where surcharges tied to fuel or logistics costs are more common.
The Postal Service has argued that the temporary charge is necessary to keep pace with rising transportation costs, particularly after oil prices surged following disruptions linked to the conflict in Iran.
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The Postal Service has asked regulators to complete their review by April 20, ahead of a planned implementation date later in the month.
“The Commission will endeavor to complete its review in the requested time frame,” the regulator said.
A final decision will come after the public comment period closes and the Commission completes its assessment of whether the proposal meets legal and regulatory requirements.
On Wednesday, USPS announced it is seeking approval to introduce an 8% surcharge on package deliveries — a first for the agency, which has historically avoided such fees even as competitors adopted them.
The proposed charge would be temporary, running until January 2027, and would not affect first-class mail or stamp prices.
The move comes as the Postal Service faces rising fuel and transportation costs, along with broader financial pressures that have forced it to explore new revenue sources.
