An Post Increases Stamp Prices as Costs and Losses Mount

An Post has announced a significant increase in stamp prices, effective February 3, 2024. The price for a standard stamp will rise by €0.20 to reach €1.85. Additionally, a new rate of €3.50 will apply for sending mail to Britain and Europe, marking an increase of €0.85. The cost of sending letters internationally will now be €3.95, a move the postal service attributes to substantial losses in international mail.

The decision comes amid increasing operational costs, wage hikes, and a notable 7 percent decline in letter volumes over the past year. According to the managing director of An Post Mails & Parcels, Garrett Bridgeman, “Increasingly, European countries have reduced letter delivery frequency to once or twice a week.” He emphasized that while An Post is adapting its services, it remains committed to providing next-day delivery to consumers.

An Post has previously raised stamp prices multiple times within a short period. The new €1.85 price follows an 18 percent increase from last year, when the cost went from €1.40 to €1.65. Just prior to that, in February 2024, the price rose from €1.35. This latest increase marks the fourth hike in less than three years.

An Post’s financial reports submitted to regulators revealed a concerning 10.4 percent decline in international mail volumes, a trend that has been attributed largely to factors outside the company’s control. The organization operates under a Universal Service Obligation (USO), which mandates that it must provide mail services to every household in Ireland every working day. Last year, losses from inbound USO international mail reached €14.2 million, while outbound processing losses totaled €10.6 million.

With mail volumes decreasing and delivery costs rising, An Post argues that price adjustments are necessary to maintain a sustainable service. The organization points out that its current stamp price of €1.85 is still below the EU/UK benchmark of €2.04 for next-day letter services.

More than half of outgoing international mail is sent to Britain, Germany, and France. To reflect this, An Post has introduced the new €3.50 rate for Europe and Britain instead of applying the higher rates designated for the rest of the world. For reference, a similar stamp in the UK currently costs €3.90.

In light of these changes, rates for large envelopes, packets, over-the-counter parcels, and registered post will also see increases. An Post emphasizes that it operates as a self-funded commercial entity, with the number of households in Ireland increasing by approximately 30,000 annually.

Despite the adjustments, An Post will continue its free delivery service for letters and parcels weighing up to 1 kg that are sent to residents of nursing homes. The company remains focused on meeting the evolving needs of its customers while addressing the financial challenges that have emerged in the postal sector.