US Postal Service raises rates as Iran war pushes up fuel costs

The US Postal Service announced Wednesday an eight-percent rate increase for some retail and commercial products, with the "transportation-related" move coming as global oil prices spiral due to the war on Iran. The price increase will affect Priority Mail Express, Priority Mail, USPS Ground Advantage and Parcel Select services, the government-run agency said. The rate increase, which must be approved by the Postal Regulatory Commission, would be implemented April 26 and remain in place until January 17, 2027.

"Transportation costs have been increasing, and our competitors have reacted with a number of surcharges," USPS said in a statement. Delivery giant UPS imposed a fuel surcharge in the United States on March 2, and Fedex also frequently updates its fuel surcharge based on US gasoline prices.

The average price of a gallon of regular gasoline in the United States has jumped 33.6 percent since the start of the war on February 28, according to data from motor club AAA. Many delivery trucks run on diesel, whose price has climbed by 43 percent, according to the data, and jet fuel prices have also surged since the United States and Israel launched their war against Iran in late February.