The Regulations Amending Certain Regulations Made Under the Canada Post Corporation Act (SOR/2024-67) updates Canada Post’s operational framework and pricing structure. The regulations primarily aim to adjust postage rates in response to economic factors, particularly inflation, affecting the corporation’s financial sustainability.

Under the Canada Post Corporation Act, Canada Post is mandated to provide reliable postal services across Canada, addressing the needs of both urban and rural communities. This obligation is reinforced by the Canadian Postal Service Charter, which emphasizes the corporation’s exclusive rights to collect, transmit, and deliver letters. However, Canada Post faces significant financial pressures due to rising operational costs driven by inflation, with the consumer price index growing by 14.8% from 2020 to 2023. These financial challenges are compounded by a decline in mail volume, as fewer letters are sent to an expanding number of addresses. The last comprehensive adjustment of postage rates occurred on January 13, 2020, and since then, the economic landscape has shifted considerably, with inflation reaching levels not seen in over 40 years. Operational costs for Canada Post increased by nearly $140 million in 2022 alone compared to the previous year. In light of these challenges, the recent amendments are designed to ensure that postage rates remain fair and reasonable while enabling Canada Post to sustain its operations.

The amendments target three specific regulations: the Letter Mail Regulations, the International Letter-post Items Regulations, and the Special Services and Fees Regulations. Key changes include an increase in the price for a domestic letter stamp weighing 30 grams or less, which will rise from $1.07 to $1.15. Additionally, prices for stamps in booklets, coils, or panes will increase from $0.92 to $0.99, with further adjustments for other weight categories. For the International Letter-post Items Regulations, rates for sending letters to the United States will also see adjustments; for instance, the price for standard mail up to 30 grams will increase from $1.30 to $1.40. Other weight categories, such as letters over 100 grams and up to 200 grams, will change from $5.57 to $5.99, with rates for heavier items also rising. Under the Special Services and Fees Regulations, the fee for domestic registered mail will increase to $10.50, up from $9.75. These amended rates reflect changing economic conditions while promoting access to postal services, taking effect on May 6, 2024, to address ongoing inflationary pressures.

The primary objective of these amendments is to allow Canada Post to adapt its pricing structure in response to rising operational costs while maintaining a commitment to fair pricing for Canadians. The regulations aim to support Canada Post’s financial viability, ensuring that it can continue to fulfill its universal service obligation to all Canadians.

By implementing these changes, Canada Post seeks to stabilize its operations, ensuring it can meet service demands while remaining financially sustainable.

Canada (SOR/2024-67) May 8, 2024