Postal Rate Hike Approved Amid Industry Challenges

The Federal Network Agency, under President Klaus Müller, has sanctioned a substantial postal rate increase for Deutsche Post, granting a 10.5% hike for letter postage. This decision reflects the agency's acknowledgment of rising operational costs and declining mail volumes affecting the postal service. As a result, the cost of sending standard letters, maxi letters, and postcards will see a uniform rise. Despite the increase, old stamps will remain valid, though they may require additional postage.

The decision comes amidst Deutsche Post's calls for greater pricing flexibility to cover financial gaps. Although the agency approved a notable increase, it rebuffed the postal service's request for a more extensive pricing leeway. The approved rate hike aligns with a calculated price escalation rate of 3.37%, which considers productivity declines and an appropriate profit margin. This detailed pricing, however, will undergo further examination in a subsequent fee-setting procedure.

The postal service's financial strategy, as outlined by Post Chief Tobias Meyer, aims to distribute the price hike "more or less evenly" across various mail categories. Amid these adjustments, the Prio-Brief service will be discontinued, with registered mail becoming the preferred option for swift delivery. These changes, coupled with a focus on climate sustainability by reducing night-time air transport, represent Deutsche Post's broader operational and environmental commitments. The forthcoming pricing table for 2025 is anticipated to provide more clarity on these developments, with a resolution expected in the coming weeks.