The United States Postal Service (USPS) is planning another round of price increases for its shipping services in 2027, including a permanent fuel surcharge. The proposed changes were announced Thursday, Nov. 12, and are expected to be implemented Jan. 17, 2027, pending regulatory review.

Home delivery services such as USPS Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select will see an average price increase of 5.9%. This change aligns the USPS increase with the average increases announced by FedEx and UPS for 2027. Still, that’s below some of the price hikes the postal operator implemented at the start of 2026.

A large part of the new pricing strategy is focused on fuel costs. The Postal Service plans to make permanent a temporary 8% price increase it implemented in April to deal with higher transportation expenses, calling it a fuel surcharge. The surcharge will be 11 percent. The extra three percentage points represent what USPS calls the further rise in fuel prices.

The current 8% adjustment is to remain in place until January 17, 2027, when the new surcharge format is expected to take effect.

USPS said international shipping products will not be affected by the fuel surcharge at this stage. The agency also plans to revisit the measure in July 2027, when it will consider developments in fuel prices in the first half of the year.

A weekly fuel surcharge adjustment set for 2027

The surcharge will be fixed for January, but later in 2027, USPS plans to move to a more flexible pricing mechanism. Under this system, the fuel surcharge would be adjusted weekly to reflect average fuel prices published by the U.S. Energy Information Administration.

It’s much like the fuel surcharge mechanisms that FedEx and UPS use now. USPS first announced this effort in October, providing customers with advance notice to prepare for the required operational and technological changes.

Customers could start making the programming changes needed to support a dynamic fuel surcharge, the agency said in a filing with the Postal Regulatory Commission. The USPS expects to get the related rate and classification changes approved later in 2027.

International shipping rates will increase 7.9%

International mail and parcel services will also be impacted by the planned changes. USPS proposes an average increase of 7.9 percent for Priority Mail International, Priority Mail Express International, First-Class Package International Service and International Priority Airmail.

The agency’s board of governors has approved the proposed pricing changes. They now must go through a review by the Postal Regulatory Commission before they can become official.

The USPS’ governors believe the adjusted rates will help the USPS remain competitive, and bring in more income to help offset the USPS’ continuing financial problems.

Revenue growth not deterred by $6.5 billion loss

The pricing strategy is occurring amid continued financial pressure for the USPS. The agency posted a net loss of $6.5 billion for fiscal year 2026, but revenue from its shipping and package operations improved.

The organization’s financial results for 2026 showed a 5.1% year-over-year growth in the shipping and packages segment’s revenue. Shipment volumes fell 5.3% in the same period.

As such, higher prices helped mitigate the impact of slowing demand, softening the financial impact of lower volumes.

“Service improvements and pricing decisions are important and that’s something that supports our revenue growth,” said David Steiner, Postmaster General and CEO, at Tuesday’s board of governors meeting.

He said the financial performance of the agency remains closely linked to improved service delivery and effective pricing policies. As these strategies keep evolving, USPS expects to continue to generate commensurate revenue improvements.

Thus, the planned increases in 2027 and the introduction of a dynamic fuel surcharge are further steps in the Postal Service’s efforts to strengthen its financial situation and adapt its pricing model to the changing transportation costs.