Iceland Post raises letter rates again

Iceland Post has raised its rates for domestic letter delivery again, mbl.is reports. The price of sending the lightest category of letter, weighing up to 50 grams, has risen by a total of 39 per cent since December 1 last year.

The latest increase took effect on August 1, when the price rose from 350 Icelandic krónur to 365 krónur, an increase of 4.75 per cent.

Under Iceland’s postal legislation, Byggðastofnun, a public institution, must publish information about changes to universal-service tariffs on its website. That has not yet happened. The institution said the publication had been delayed by summer holidays and that the reasoning behind the change would be posted during the week.

Iceland Post said the price of its Netpakki parcel service for items weighing between zero and 10 kilograms would not increase. As a result, sending a 251-gram letter now costs the same as sending a 10-kilogram parcel through that service.

Prices for international letters have also increased. The cost of sending a letter weighing up to 50 grams to Europe rose from 415 krónur to 435 krónur, while the price for destinations outside Europe increased from 530 krónur to 555 krónur.

In 2020, the Post and Telecommunications Agency appointed Iceland Post as the universal-service provider for 10 years. Iceland Post also receives annual state funding for providing the service, amounting to nearly 800 million krónur this year.