Maltapost is asking for a 10c tariff increase for single-piece mail items over a three-year period on grounds it has been delivering the service at a loss for a number of years.

The proposal, submitted to the Malta Communications Authority, was part of a wide-ranging upward revision of tariffs for both domestic single-piece and bulk-mail items.

The proposed tariff structure has been published for public consultation, which closes on May 15.

Read: Maltapost wants stamp of approval for new tariffs

In the case of single-piece mail items weighing under 50 grams, which is by far the most popular service on offer, Maltapost is proposing to increase the existing tariff of 26c per item by 4c this year, 3c next year and 3c in 2021.

Over a three-year period, it would translate to a 10c upward revision or a 38%increase.

However, the highest increase is being proposed for single-mail items between 151 and 200 grams, with the tariff more than doubling from 82c per item to €1.85 by 2021. In its proposal, Maltapost pointed out that this category represented less than one per cent of domestic mail flows.

Delivering the service at a loss for a number of years

No fee increase is being requested for additional weight above 200g, which will remain at 20c per 50g.

A 29% (12c) increase is being proposed for items weighing between 51 and 100g while a 19% rise is being requested in the next category (101g-200g). Both of revisions are over a three-year period too.

Read: Maltapost registered mail tariffs more than double

The post operator is also asking for a rise in the tariffs of bulk-mail items, which is the term used for a large number of items (50 or more) in identical size and format that are handled directly at a post office counter. In this category, users are charged at a rate lower than single-piece items.

Under the proposed tariffs, the increase would be of 25% for items weighing up to 50g and 11% in the 51g-100g category.

Maltapost submitted that the profitability of mail services had been in decline for years and was only just within the acceptable range of return set by the MCA. This trend was due to annual increases in staff costs and other factors including inflation.

However, the MCA said it had some concerns on the proposed tariffs and was not in agreement with certain aspects. In the consultation document, the regulator said it was carrying out cost-accounting reviews and assessing the compatibility of the proposed changes with ensuring the availability of an affordable service.

The changes proposed by Maltapost

Single-piece tariffs Current Yr 1 (2019) Yr 2 (2020) Yr 3 (2021)
0-50g  €0.26 €0.30 €0.33 €0.36
51-100g  €0.42 €0.50 €0.52 €0.54
101g-150g  €0.62 €0.70 €0.72 €0.74
151g-200g  €0.82 €1.45 €1.65 €1.85
201g-2kg  €0.20 (for each additional 50g) €0.20 (for each additional 50g) €0.20 (for each additional 50g) €0.20 (for each additional 50g)
         
Bulk mail tariffs Current Yr 1 (2019) Yr 2 (2020) Yr 3 (2021)
0-50g  €0.24 €0.28 €0.29 €0.30
51-100g  €0.36 €0.38 €0.39 €0.40
101g-2kg  €0.20 (for each additional 50g) €0.20 (for each additional 50g) €0.20  (for each additional 50g) €0.20 (for each additional 50g)

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.