Royal Mail warns that it will raise prices again

Parcel and stamp prices could rise again as Royal Mail seeks to cover higher costs, including labor, energy and fuel costs.

The agency said it would try to “mitigate” costs through “price increases and growth initiatives”.

Earlier this year, the firm raised the price of first-class stamps from 10p to 95p and second-class stamps from 2p to 68p.

The warning comes after Royal Mail faced “significant headwind” due to rising costs.

It said the cost would be further reduced, with its target increased from £ 290m to £ 350m.

A spokesman said: “We have not decided on future pricing, but we will always carefully consider the impact on our customers and ensure that any changes help secure the sustainability of public services.”

The Royal Mail says it is continuing to make business changes to better deal with it as its parcel business has become more important than letter delivery.

The volume of letters has dropped by 60% from their peak in 2004-05 and by about 20% since the onset of the epidemic. Meanwhile, parcel delivery increased during the epidemic.

Simon Thompson, chief executive of Royal Mail, said: “As we emerge from the epidemic, we need to accelerate the transformation of our business, especially in distribution.

“Our future is as a parcel business, so we need to adapt to the old ways of working designed for the letter and do it faster in a world of increasing dominance by parcels.”

Mr Thompson said the focus now would be on “working at speed” with staff and trade unions, “reinventing this British icon for the next generation”, giving customers “what they want” business sustainably and “providing long-term employment” security.

The price hike alert came as the business saw its pre-tax profit fall 8.8% to বছরের 662m for the year to the end of March.

Royal Mail is facing an ongoing pay dispute with its largest trade union.

In January, it said about 700 management roles would be cut. Shortly after the epidemic began, the company dropped one-fifth of its managers – about 2,000 posts – in June 2020.

The company was widely criticized for delaying delivery in Christmas and January earlier this year. Citizens Advice estimates that 2.5 million Royal Mail subscribers did not receive important documents such as health appointments, fines or bills.

The Royal Mail said the wave of Omicron transmission meant thousands of staff members had to take vacations at Christmas and January. It did, however, say that the “huge majority” of posts were delivered on time.

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