Forced Price Reduction to Worsen USPS Financial Condition by $2 Billion Per Year
Postal Service Exigent Surcharge Pricing to End April 10
WASHINGTON — Absent Congressional or court action to extend or make permanent an existing exigent surcharge for mailing products and services – including the Forever stamp — the Postal Service will be required to reduce certain prices on Sunday, April 10, 2016. This mandatory action will worsen the Postal Service’s financial condition by reducing revenue and increasing its net losses by approximately $2 billion per year.
“The exigent surcharge granted to the Postal Service last year only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone,” said Postmaster General and CEO Megan J. Brennan. “Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition.”
A great article on the rollback rates is provided by Mark Fallon at The Berkshire Company:
On Friday, February 5, The United States Postal Service (“USPS”) released the draft postage rates for the rollback of the Exigent Rate Increase in April. While there remains some uncertainty around the implementation date, this is good news for mailers.
Most commercial mailers will see rates drop around 4.1%, depending upon class of mail and level of sortation. For First-Class Mail, the new rates for one-ounce letters are: