New Delhi

Beginning on Sunday, the price for first-class US mail stamps will jump to 73 cents from 68 cents, the latest in a series of price hikes.

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The hike, as announced in April and approved by the Postal Regulatory Commission late last month, marks a 7.8 per cent rise in the price of mailing services products. Forever first-class stamps can be used at any time, including after the rise of the price of postage.

In November, the US postal service posted a $6.5 billion annual net loss as first-class mail volume tumbled to its lowest level since 1968. The next raise in stamp prices bumps the cost up 46 per cent since 2019 when they were 50 cents.

USPS has been aggressively increasing the price of stamps because it has lost upwards of $100 billion since 2007. Currently, the Postal Service is undergoing a restructuring plan announced in 2021 to erase $160 billion in projected losses over the next decade.

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Meanwhile, as the world's biggest mail delivery operation, USPS handles 123 billion pieces of mail and packages annually and accounts for 44 per cent of the world's mail. 

The agency has said it expects its "new pricing policy to generate $44 billion in additional revenue" by 2031.

First-class mail volume dropped 6.1 per cent in the 12 months ending September 30, 2023, to 46 billion pieces, down 53 per cent since 2006, and the lowest volume since 1968. It is mainly used for sending letters and paying bills—is its highest revenue-generating mail class, contributing $24.5 billion or 31 per cent to USPS's total revenue in 2023.

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In April 2022, President Joe Biden signed legislation offering USPS about $50 billion worth of financial relief for a decade. 

Additionally, in May, at the urging of a bipartisan Senate group that expressed concerns about the impact on mail deliveries, US Postmaster General Louis DeJoy agreed not to further consolidate the Postal Service's processing network until at least January.

This is in the middle of efforts geared toward stabilising its financial situation, considering the challenges related to declining mail volumes and increased operational costs. Constant restructuring and price adjustment are to guarantee the long-term survival of the USPS.