Postal Rate Increase and "Forever Stamps"

MSNBC is reporting, that the Post office is requesting a 3 cent rate increase, to pay for the rise cost of fuel, insurance, etc etc. The increase in January was required so the post office could place some $3 billion in an escrow account, a step required by congress. The new rate, if approved, would go into affect in May 2007, and would make a first class stamp 42 cents.

each penny increase in the price of a gallon of gasoline costs the post office $8 million

However, there is a twist. The idea for the special stamps, which would be sold at the same price as other first-class stamps, was included in proposals.

“A forever stamp would help ease the transition to any future price adjustments,” board Chairman James C. Miller III said.

The "forever stamp" would help soften the blow of a rate increase by allowing customers to stock up. As originally proposed it would sell for the first class rate and, once purchased, the special stamp would remain valid for whatever the first-class rate is when it is used, regardless of future increases. Customers could even stock up on the stamp in advance of an increase, ending the need for those stupid one and two cent stamps, to get the exact postage.