USPS to Launch Weekly Fuel Surcharge in January 2027, Aligning With FedEx and UPS

The U.S. Postal Service will begin levying a weekly fuel surcharge on package shipping services starting in January 2027, the agency announced Monday, matching pricing practices already used by FedEx and UPS. The fee applies to USPS Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select domestic shipments. It will be calculated as a percentage of base postage and updated weekly based on diesel and jet fuel prices listed on the U.S. Energy Information Administration's website. Specific percentages will be published three to five days before implementation for diesel-applicable shipments and three to four days prior for jet fuel shipments. Negotiated contracts may carry customized language on surcharge applicability. The surcharge follows an 8% temporary rate hike installed in April and running through Jan. 17, 2027. That increase lifted package shipping revenue 7.7% year over year in Q3 even as volume fell 3.4%, a bright spot in a quarter that again produced a net loss. Postmaster General David Steiner told the board of governors in August that the agency has "more price to take in the marketplace."