NZ Post hikes prices, adds recycled bag options

New Zealand Post will hike the price of sending a standard letter by 10 cents, to $1.40, from July 1.

The state-owned postal service revealed changes to its rates and services, including an increase in the cost to send standard mail and some prepaid bags, in a statement on its website.

The move follows a 10c increase last year and a 20c jump in 2018.

The statement said the decision to increase prices was not made lightly, given the Covid-19 pandemic and the challenges facing New Zealand businesses.

‘‘While we focus on keeping costs to a minimum and are always looking for innovative ways to provide our service more efficiently, we also have a responsibility to deliver a sustainable mail service for New Zealand and do need to review prices annually,’’ the statement said.

NZ Post has been approached for further comment.

The mail carrier has been under financial pressure due to rapidly declining mail volumes in recent years. It was allocated $280 million in government support in last week’s Budget.

As well as $130m over three years to fund mail services, it will receive a $150m ‘‘equity injection’’ from the Covid Response and Recovery Fund.

Following the Budget announcement, NZ Post chief executive David Walsh said delivering mail was a core service but it couldn’t solve the future of mail services alone.

The funding would allow NZ Post to continue providing a nationwide mail network at current service levels, while it worked on a longerterm solution, he said.

In the meantime, the cost of postage-included recycled paper bags will rise from $5.50 to $5.90 for size 2 and from $8 to $8.60 for the larger size 4 bag.

The annual fee for renting a PO Box will also increase by $10 from July, and postage-included plastic bubble bags will be replaced with recycled padded paper bags.