Canada Post proposes new postage rates for 2025

Price of a domestic stamp would rise 25 cents in move to better align with rising cost of providing the service

OTTAWA, ON, Sept. 6, 2024 /CNW/ - Canada Post is proposing to increase regulated postage rates in 2025. For stamps purchased in a booklet, coil or pane, which represent the majority of stamp sales, the rate would increase by 25 cents, to $1.24 per stamp.

For the last decade, the Corporation has kept regulated letter mail rate increases to a minimum. The proposed rate change represents a one-time increase of roughly 25 per cent, which is required to better align stamp prices with the rising cost of providing letter mail service to all Canadians.

• Canadian letter mail volumes have declined by 60 per cent over the last two decades, from 5.5 billion letters in 2006 to 2.2 billion letters in 2023.
• During that time, the number of addresses served has increased by more than 3 million, from 14.3 million addresses in 2006 to 17.4 million addresses in 2023, and that number continues to grow.
• In 2006, Canadian households received an average of seven letters per week; today, it's two per week.
• From 2018 to 2023, Canada Post lost $3 billion before taxes, including a loss before tax of $748 million in 2023.

Every year there are fewer letters to deliver to more addresses, adding significant cost pressures to the Corporation on top of continued inflationary pressures. At the same time, Canadian stamp prices have remained among some of the lowest internationally.

Pending regulatory approval, the new rates would take effect January 13, 2025, after the busy holiday mailing season. The new regulated rates are expected to generate approximately $80 million of additional annual gross revenue for Canada Post in 2025.

Minimizing the impact

While rate increases are necessary, Canada Post understands that they mean additional costs for customers, and the Corporation works to minimize the impact. For the average Canadian household, the rate increase is estimated to have an impact of $2.26 per year. For the average Canadian small business, the estimated impact is $42.17 per year.¹ Permanent^™ stamps will always be accepted at the current domestic postage price.

We also encourage small businesses looking for support or special discounts on shipping and other services to sign up for the free Canada Post Solutions for Small Business^™ program.

Statement from Doug Ettinger, President and CEO, Canada Post

"Ensuring stamp prices better reflect the cost of providing the service is an important step forward and aligns with efforts being taken by postal services around the world.

The reality is, however, that more needs to be done to address the significant long-term structural and financial issues facing the Corporation. We are taking action to manage our costs while working closely with the government on a path to ensure the postal service is there for Canadians today and tomorrow."  

Statement from the Hon. Jean-Yves Duclos, Minister of Public Services and Procurement

"With a role to serve all, Canada Post is an essential service that connects Canadians, communities and small businesses to each other, and the country. The transition to digital communications is placing pressure on postal services around the world, but we know that Canada Post remains an important way for Canadians to stay connected to one another while providing good jobs for thousands of Canadians.  

The Government of Canada is actively working with Canada Post to secure the long-term viability of this essential service. We will ensure postal service is maintained as part of Canada Post's mandate as a 'service first' organization focused on delivering the mail."

Further details

For a domestic letter (30 grams or less), the price of a single stamp would increase from $1.15 to $1.44. When purchased in a booklet, coil or pane, the price would increase from 99 cents to $1.24 per stamp. The proposed rate changes would also affect other products, including U.S., international letter-post and domestic Registered Mail^™ items, with a corresponding increase of about 25 per cent on average. Commercial letter mail rates follow regulated rates and would also see an increase of about 25 per cent on average. 

The proposed rates were published today for public comment in Part I of the Canada Gazette. Subject to regulatory approvals, the new rates would take effect January 13, 2025.

1.	Estimate based on average annual spending of businesses and households.

^™	Trademark of Canada Post Corporation.

SOURCE Canada Post

For more information: Media Relations, 613-734-8888, [email protected]