US postal chief foresees 2007 rate increase
Gasoline prices that have millions of Americans digging deeper into their pockets are spurring thoughts by Postal Service officials that an increase in mail rates may be needed in 2007, following one already planned for next year.
The fact that it costs the mail agency USD8 million for every penny increase in gasoline prices for its 212,000 vehicles is a major factor in a postal rate increase expected in 2007, after one next year, Postmaster General John Potter said Friday. A 2-cent increase in stamp prices scheduled to take place in 2006 will merely cover the cost of legally required escrow payments, so growing costs overall will force a second boost a year later, Potter said Friday in an interview with The Associated Press.