Canada Post is proposing an increase to regulated postage rates next year, bringing the price of most stamps up by 25 cents to $1.24.
The organization says it has kept letter mail rate increases to a minimum over the past decade and the one-time increase would help align stamp prices with the rising cost of providing the service. Stamp prices were last increased in 2023, when the cost of a stamp rose by seven cents.
Canada Post says letter mail volumes have decreased by 60 per cent over the past two decades, while the number of addresses to serve has gone up.
In a press release, the Crown corporation says Canadian households received an average of seven letters per week in 2006. Today, households only receive an average of two letters per week.
In August, Canada Post’s board chair said its financial situation was unsustainable due to lower letter volumes and more competition in parcel delivery. The organization says it lost $3 billion before taxes from 2018 to 2023, including a before-tax loss of $748 million in 2023.
Canada Post says that if approved, the new rates would take effect on Jan. 13, after the holiday mailing season.
It says the new rates would generate about $80 million in additional gross revenue in 2025.
Canada Post has a monopoly on Canadian letter delivery. But financial reports show the Crown corporation has lost $748 million this year alone and is expected to run out of money by early 2025. Andrew Chang explains how – even when parcel delivery is at an all-time high – the company can’t catch a break, and what it means for your mail.
Source Agencies
