Stamps to cost more as Canada Post faces financial pressure

Canada Post, the national postal service, has announced its intention to raise the price of stamps by seven cents for most customers, starting from May 6. The proposed increase is subject to regulatory approvals and public feedback.

Stamps
Stamps

Why the price hike?

According to Canada Post, the price hike is necessary to cope with the “considerable” financial pressure it faces due to inflation and the declining volume of letter mailEach year, there are fewer letters to deliver to more addresses, the agency said in a statement.

Canada Post also said that the domestic letter mail rates have gone up only twice in the last decade: by five cents in 2019 and two cents in 2020. The last “major pricing change” was made in March 2014.

How much will it cost?

The proposed price increase will affect different types of stamps and products. Here are some examples:

  • For stamps purchased in a booklet, coil or pane, which account for the majority of sales, the price will go up from 92 cents to 99 cents for a domestic letter.
  • For stamps purchased individually, the price will go up from $1.07 to $1.15 for a domestic letter.
  • For U.S. letter-post, the price will go up from $1.30 to $1.36 for a stamp purchased in a booklet, coil or pane, and from $1.45 to $1.52 for a stamp purchased individually.
  • For international letter-post, the price will go up from $2.71 to $2.83 for a stamp purchased in a booklet, coil or pane, and from $2.86 to $2.99 for a stamp purchased individually.
  • For domestic registered mail, the price will go up from $9.52 to $9.92.

How will it affect Canadians?

Canada Post estimates that the impact of the change will be about 65 cents per year for the average Canadian household, and about $12.07 for the average Canadian small business.

However, some Canadians may not be happy with the price hike, especially during the COVID-19 pandemic, when many people rely on mail services to stay connected and receive essential items.

“I think it’s ridiculous. They’re already charging enough for stamps as it is,” said Mary Smith, a retired teacher from Toronto.

“I don’t think it’s fair to raise the price when people are struggling financially and emotionally. I use mail to send cards and letters to my grandchildren and friends. It’s a way of showing them that I care,” she added.

What are the alternatives?

For those who want to save money on postage, Canada Post offers some alternatives, such as:

  • Using electronic options, such as e-post, e-transfer, e-billing, and e-greeting cards, to send and receive payments, bills, and messages.
  • Buying stamps in bulk, such as booklets, coils or panes, which are cheaper than individual stamps.
  • Using online tools, such as Find a Rate and Find a Postal Code, to calculate the exact postage and avoid overpaying.
  • Using self-serve options, such as stamp vending machines, postal kiosks, and online shopping, to buy stamps and products without visiting a post office.

Canada Post also said that it will continue to invest in its network and services, such as parcel delivery, community mailboxes, and accessibility, to meet the changing needs and expectations of Canadians.

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