U.S. Postal Service seeks 8% fuel surcharge for package deliveries as Iran war raises oil prices

The U.S. Postal Service on Wednesday said it is seeking to impose a temporary 8% fuel surcharge for package and express mail deliveries to deal with rising transportation costs, which include higher oil prices as a result of the Iran war.

If approved by the Postal Regulatory Commission, the surcharge would take effect April 26 and remain in place until Jan. 17, 2027, the Postal Service said in a notice on its website.

The 8% surcharge would apply to postage on Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select products. First-class stamps and other mail services would not be affected.

Oil prices have jumped more than 40% since Feb. 28, when the United States and Israel attacked Iran.

FedEx and UPS, two major package shippers, for years have imposed fuel surcharges on deliveries. Those surcharges have sharply increased since the U.S. and Israel attacked Iran on Feb. 28, which caused the price of oil to rise by more than 40%.

“This temporary price adjustment will provide needed flexibility for the Postal Service by helping to ensure that the actual costs of doing business are covered, as required by Congress,” the Postal Service said in its announcement.

“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” the notice said.

“We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone, so even with this change, the Postal Service continues to offer great value in shipping with some of the lowest rates in the industrialized world.”

CNBC has reached out to the Postal Regulatory Commission for comment on the Postal Service’s request.