Postal service, facing huge losses, trying to raise prices

Postal service, facing huge losses, trying to raise prices

Americans will have to pay more to mail a letter under a series of price increases that the Postal Service proposed Friday as part of a plan to reverse $ 160 billion in projected operating losses over the next decade.

Below Proposal, The price of first class ticket will increase for the first time Jan 27, 2019, From 55 cents to 58 cents. A postcard will increase from 36 cents to 40 cents and an international letter from $ 1.20 to $ 1.30.

Postal Service said That the changes will take effect on August 29, if approved by the Postal Regulatory Commission.

The proposed changes are part of a 10-year plan recently unveiled by the troubled agency, which has been struggling with nationwide delivery delays and the falling use of traditional mail.

The plan would also increase the promised delivery time, reduce post office hours, consolidate locations, limit the use of aircraft to deliver mail, and the delivery standards for first-class mail within three days in the continental United States Will loosen within five days.

The Postal Service said it aimed to achieve financial stability and meet its 95 percent target for timely delivery, as it faces heavy financial losses and declining mail volumes. The agency said that in the past 10 years, mail volumes have dropped by 46 billion, or 28 percent.

The agency, considered self-sufficient, has incurred losses of $ 87 billion in the last 14 fiscal years and is projected to suffer an additional $ 9.7 billion in fiscal year 2021 alone.

The proposed rate increase comes after the Postal Regulatory Commission announced new rules in November 2020, intended to give the agency more flexibility to set mail prices.

The postmaster general, Louis Dejoy, a Trump megadonor who has faced criticism over the handling of the agency, said in a statement that, for the past 14 years, the agency had “limited pricing authority to change market realities.” “

The Postal Service and Board of Governors “are committed to judiciously applying a rational pricing approach that helps us remain viable and competitive and provide reliable postal services that are the cheapest in the world,” Mr. Dejoy he said.

Democrats have sharply criticized the 10-year plan. In March, Speaker Nancy Pelosi of California swore off To pursue an infrastructure bill “to ensure that the Postal Service has the necessary resources to serve the American people in a timely and effective manner.”

Last week, a bipartisan group of senators also introduced legislation aimed at addressing the agency’s grave finances.

The law would eliminate the requirement under the 2006 law that the postal service pre-fund its health benefits for retirees and integrate its health care with Medicare, giving both the senator and the postal service estimates agency $ 40 billion Can save more. Next decade.

Senator Rob Portman of Ohio, the top Republican on the Homeland Security and Government Affairs Committee, said in a statement that the law, along with Mr. Dejoy’s 10-year plan, “could help reduce substantial losses to the Postal Service. The last decade and more. Ensure self-sufficient, high quality postal service for all Americans. “