For the first time in 97 years stamp prices will decrease. Starting Sunday stamp prices will drop from 49 cents to 47 cents. The changed was based on an agreement between Congress and the Postal Service.
A surcharge was approved by Congress in 2013 to allow the postal service to collect $4.6 billion. That amount is expected to be reached by April 10, when the mandatory 2 cent reduction will take place. The post office is not authorized to change stamp prices it would take congressional or court action.
In a release, the Postal Service said this change will result in the post office losing $2 billion a year.
“The exigent surcharge granted to the Postal Service last year only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone,” said Postmaster General and CEO Megan J. Brennan. “Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition.”
Commercial prices will also decrease. For more information, visit http://pe.usps.com/.