US Postal Service increases stamp price to 73 cents

The U.S. Postal Service made its price hike official Friday, raising the price of stamps from 68 cents to 73 cents.

Five years ago, stamps cost 50 cents, making this latest price hike a 36% increase. Stamp sales help to fund the Postal Service, as it does not receive tax dollars toward its operating expenses. The hike will result in an anticipated $44 billion in revenue by 2031.

Last November, the Postal Service reported an annual loss of $6.5 billion. That year first-class mail was at its lowest volume since 1968.

The Government Accountability Office wrote on its Watchblog last August that Postal Service revenues “haven’t covered its expenses and debt for more than 15 years. And its expenses are growing faster than its revenues, in part due to continuing declines in volume for First-Class Mail — its most profitable product. USPS has been able to continue operating in this situation by increasing its debt and unfunded liabilities.”

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Almost 75% of Postal Service operating costs go toward employee compensation. Additionally, nearly 80% of its employees belong to the American Postal Workers Union.

The agency is still looking to increase the price of its parcel service by 25% but has not received approval. This service has several competitors in FedEx and UPS, among others.