High Gas Prices Could Stamp Out Postage Prices

WASHINGTON -- You may soon be feeling the burn of rising gas prices at the post office.

Stamp prices increased from 37 to 39 cents at the beginning of the year, in order to pay for retiree health benefits. Now, the U.S. Postal Service is considering hiking the price again because of climbing fuel prices.

The U.S. Postal Service may file a proposal for another hike in postage rates as early as this month, Postmaster General John Potter says.

Potter says the increase would pay for higher gas prices, increases in pay and health benefit costs.

Since 2002, the price of fuel and electricity have increased by more than $2 billion a year, Potter says.

There is no word yet on how much the new stamps would cost, but the new price could take effect in early spring 2007.

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