USPS to impose fuel surcharge amid Iran war

  The U.S. Postal Service is expected to impose an 8% surcharge on packages to cover rising fuel costs, according to the agency.

The surcharge will take effect in April, with an expectation to be phased out in January 2027. It is expected only to apply to packages, not letters.

It is the first time in history the agency has issued a fuel surcharge.

“The U.S. Postal Service filed notice today with the Postal Regulatory Commission (PRC) regarding a time-limited price change to better align its costs of transportation with the market. 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,” a statement from the agency read in part.

Live updates: ‘No timeline’ on Strait of Hormuz reopening, White House says

The Iran war has rattled the global flow of oil, with steeper fuel costs already straining households worldwide. And in the U.S., drivers are now facing the highest prices they’ve seen at the pump in two and a half years.

According to AAA, the national average for a gallon of regular gasoline jumped to over $3.84 on March 18, up from $2.98 consumers were paying before the U.S. and Israel attacked Iran on Feb. 28. The last time gas prices were as high as they are now was in September 2023.

Iran has effectively halted nearly all tanker movement in the key Strait of Hormuz, where roughly one-fifth of the world’s oil once sailed through on a typical day. That’s led to cuts from some major producers in the region, because their crude has nowhere to go.