A USPS worker delivers packages in New York. (Bess Adler/Bloomberg)
March 25, 2026 3:23 PM, EDT
The U.S. Postal Service will impose a surcharge to offset rising fuel costs, people familiar with the matter said, a sign that the beleaguered mail carrier is feeling the strain of higher oil prices as the war in Iran continues.
Starting in April, the USPS will increase prices 8% on some packages until mid-January of next year, said the people, who asked not to be identified because the decision hasn’t been made public.
The surcharge is the postal service’s first ever in response to fuel prices, The Wall Street Journal reported earlier March 25. USPS did not immediately respond to requests for comment.
The plans highlights how the war in Iran is reverberating across the global economy through soaring oil and fuel prices. The rapid gains have stoked concern about the impact to consumers and companies alike.
As heavy users of fuel, transportation companies are particularly exposed. United Airlines Holdings CEO Scott Kirby warned that airfares may need to rise 20% in light of surging jet fuel prices.
In the U.S., diesel prices at the pump have risen to an average of $5.37 a gallon, according to the American Automobile Association — up more than $1.60 since the start of the war. That move has occurred in tandem with a spike in futures, which are up more than 48% from the start of the war.
Gasoline prices have also moved sharply, with retail prices currently hovering just below $4 a gallon on average nationally. Futures are up 51% since the U.S. first attacked Iran.
The postal service is also facing a broader dire financial situation, with Postmaster General David Steiner telling lawmakers earlier this month that the agency could run out of cash in less than a year. He has hired restructuring firm Alvarez & Marsal for recommendations to improve the organization’s finances.
“Every single day, we drive the equivalent of 13 trips to the moon and back,” Steiner said in a March 4 interview with Bloomberg News. “You have to be concerned about oil prices.”
Steiner said at the time that USPS might need to implement a fuel surcharge if the cost of diesel stays high. While private carriers like UPS Inc. and FedEx Corp. commonly use surcharges to offset higher fuel costs, the postal service has not done so in its recent history.
Fuel represented about 2% of the postal service’s annual operating expenses last fiscal year, according to a filing from the agency.
FedEx shares fell 1.2% at 3:05 p.m. in New York on March 25. UPS was little changed.
USPS ranks No. 4 on the Transport Topics Top 50 list of the largest global freight companies.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Supply Chain Solutions is No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 2 on the TT Top 50 list of the largest global freight carriers.
FedEx ranks No. 2 on the for-hire TT100, No. 43 on the logistics TT100 and No. 3 on the global freight TT50.
