5c price increase on USPS stamps

To address its revenue shortfall, the US Postal Service (USPS) is asking for the biggest price hike on its stamps since 1991.

USPS asked for a raise in price on 1oz letters to go up from 50 cents to 55 cents. However, the price increase per additional ounce is to fall slightly.

The request is being made by UPS to its board of governors. This is operating on an emergency basis due to a lack of confirmed members. This will also have to be approved by the Postal Regulatory Commission.

“The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue,” the USPS said in a press release. “The Postal Service has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping.”

The new price plan comes at a time when USPS is struggling with sales, as mail has been replaced with electronic communication. While the service has been handling more package delivery, the loss in mail delivery has been more dramatic — and mail is the service’s main source of revenue, Postmaster General and CEO Megan Brennan said earlier this year of the financial loss.