Deutsche Post DHL reversing price hikes

In the face of opposition from the German Federal government, Deutsche Post DHL is to reverse the planned price increase for domestic parcels, small packages and additional services for private customers that were introduced on the 1st January. The reversal is to be complete on 1st May this year.

Germany’s Federal Network Agency (Bundesnetzagentur) appeared to be about to take legal action to force the postal operator to reverse the price hikes.

As of the 1st January, Deutsche Post DHL raised the price for parcels and small packages for private customers by around 3% after freezing the price for three years. The drivers behind the price increases include increased personnel costs, transport costs and investments in service and quality improvement. In accordance with Federal regulations the postal operator informed the Bundesnetzagentur in autumn last year that the price increases would go ahead.

Though it took its time to come to judgement the Federal agency called the price hikes excessive and initiated a review of the price increases on the 28th January this year. It believes that the price increases would lead to excessive revenues for Deutsche Post DHL. Though it doesn’t agree with the agency it backed down to avoid a lengthly legal dispute.

As with the Bundesnetzagentur taking its time to come to judgement, the bureaucracy of the postal operator will take time to kick in as computer systems and data changes at more than 24,000 service points needs to be changed. Thus it is to take until May 1 to reverse its price increases.