October 30, 2026

USPS Update: No Jan. 2027 Rate Increase, Fuel Surcharge Changes Coming

Written By: Will Lubaroff
Postal service update

Good news: organizations planning direct mail, catalogs and publications will get some pricing stability to start 2027. The U.S. Postal Service will not implement a January 2027 price increase for market-dominant mail, which includes First-Class Mail, Marketing Mail and Periodicals. According to Midland, the next rate hike is set to hit in July 2027, and they predict we’ll see a 6% to 7% increase. However, there are still changes to expect in the new year. 

USPS to Introduce a Weekly Fuel Surcharge 

While market-dominant rates will remain unchanged in January, USPS is changing how it accounts for fuel costs on competitive package shipping services. 

Beginning in January 2027, USPS plans to apply a fuel surcharge to domestic USPS Ground Advantage, Priority Mail, Priority Mail Express and Parcel Select shipments. The surcharge will be calculated as a percentage of base postage and will be updated weekly based on diesel and jet fuel prices published by the U.S. Energy Information Administration. Negotiated contracts may have customized terms governing how the surcharge applies.  

This follows the temporary 8% transportation-related price increase USPS introduced in April 2026 for those same competitive products. That adjustment is scheduled to remain in effect through Jan. 17, 2027.  

For mailers, the key distinction is simple: January will not bring a market-dominant rate increase for traditional mailing programs, but organizations using USPS package shipping services should prepare for a new variable fuel cost. 

Stay Up to Date With Walsworth 

Walsworth will continue monitoring USPS pricing developments and sharing information that can help customers plan their mailing and distribution budgets. Contact Walsworth to discuss how upcoming postal changes may affect your mailing strategy. 

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