Postal Service Proposes 3 Cent Stamp Price Hike, Citing Revenue Concerns

The Postal Service proposed increasing the price of postage stamps by 3 cents Wednesday, in an aim to raise $2 billion more in revenue.

The increase, which would go into effect in January 2014 if approved by the Postal Regulatory Commission, would boost stamp prices for letters from 46 cents to 49 cents. This is the first time the Postal Service is requesting a stamp price change beyond the rise in inflation since 1971. Board of Governors chairman Mickey Barnett cited the Postal Service's "precarious financial condition" in a letter to customers about the change. The agency is facing a $6 billion loss this year.

“Of the options currently available to the Postal Service to align costs and revenues, increasing postage prices is a last resort that reflects extreme financial challenges,” Barnett wrote in the letter. “However, if these financial challenges were alleviated by the timely enactment of laws that close a $20 billion budget gap, the Postal Service would reconsider its pricing strategy.

This is a developing story, check back for updates.