USPS wants to increase stamp rate - Hawaii News Now - KGMB and KHNL

USPS wants to increase stamp rate

(RNN) - The United States Postal Service has proposed prices changes to generate $2 billion in annual revenue.

A price increase on First-Class Mail single-piece letters from 46 cents to 49 cents is among the proposed changes the Postal Regulatory Commission (PRC) will consider on Sept. 26.

Other changes include letters to all international destinations would increase to $1.15 and postcards increase to 34 cents. Price increases also are requested for standard mail, periodicals, and package services.

"Of the options currently available to the Postal Service to align costs and revenues, increasing postage prices is a last resort that reflects extreme financial challenges," said Chairman of the Board of Governors, Mickey Barnett, in a news release.

"However, if these financial challenges were alleviated by the timely enactment of laws that close a $20 billion budget gap, the Postal Service would reconsider its pricing strategy."

Since the Postal Service was formed in 1971, stamp prices have stayed consistent with average annual rate of inflation of 4.2 percent.

During the last fiscal year, the Postal Service recorded a $15.9 billion net lost and is expecting a $6 billion lost in the current fiscal year.

The PRC will review the prices and must agree that the prices are consistent with the law before they become effective.

The proposed changes would go into effect January 2014 and generate $2 billion in incremental annual revenue for the Postal Service.

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