Postage Rollback Coming April 10

Promotional mailings may get a boost in April when rates on first-class postcards are expected to drop from 35 cents to 34 cents each. Look for postage for one-ounce letters to drop from 49 cents to 47 cents as well. The reduction is the result of the removal of the exigent surcharge that has been in effect since January 2014.

Last month, the U.S. Postal Service filed a notice with the Postal Regulatory Commission (PRC) that it intends to remove the exigent surcharge on April 10. Absent any court or legislative intervention, the postage rates for market dominant products will decrease by approximately 4.3 percent.

In the filing, the USPS stated that as of February 14 it had collected an estimated $4.347 billion in cumulative surcharge revenue toward the mandated amount of $4.634 billion. In order to estimate the exigent surcharge revenue that the USPS will collect between now and the beginning of April, the Postal Service relied on the same methodology it used in its second Biweekly Report.

Once the surcharge has been removed, postal prices will return to the Consumer Price Index-capped levels.

Standard mail, periodicals and package services commercial prices will also decrease. See the complete listing of the new prices, effective April 10, here.

filed under industry-news | march-2016
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