The Ministry of Regional and Agricultural Affairs has proposed raising domestic letter postage by 20 percent to €1.80 and international parcel rates by 10 percent.
Sending a letter currently costs more than the sender pays, Minister of Regional and Agricultural Affairs Hendrik Johannes Terras (Eesti 200) said in a press release.
“Volumes are declining, input costs are rising and the gap must currently be covered by the company or the state. We have to bring prices closer to the actual cost – otherwise, the service will simply operate at a loss,” he added.
Even with the planned increase, not all costs will be covered, the Ministry of Regional and Agricultural Affairs said. The proposed hike would help offset a portion of actual expenses and support a transition to a new funding model for postal services, which is currently in development.
According to the draft regulation, the price of the universal postal service would rise by an average of 8 percent. For example, the cost of sending a standard letter would increase from €1.50 to €1.80 – a 20 percent jump – and express letter postage would rise from €2.60 to €3.10, or 19 percent. The cost of sending international letters and parcels would go up by an average of 10 percent.
Read more: ERR.EE
