THE COST OF posting a letter in Ireland is set to rise again, as An Post has confirmed that it is increasing the price of a stamp by 25c to €1.65.

The price increase will come into effect on the 27 February for individual customers, while businesses will be hit with the increase from 1 March.

An Post explained that the latest price increase is necessary to cover wage increases for postal staff, higher operating costs, and a drop in the volume of letters being posted.

Over the year the volume of letters has dipped by 8%, while it is down by half in the past decade, An Post said.

Its figures state that 93% of letters are now generated by businesses or Government bodies, with just 7% comprising personal cards and letters.

The company said the new price is in line with global trends, and is lower than many other EU countries and the UK benchmark price of €1.88 for a next-day letter service.

The cost of stamps for international letters is also increasing from €2.20 to €2.65. The rates for large envelopes, packets and parcels to international destinations will also rise.

Under the changes, a digital stamp will rise by 22 cent to €2.22.

Managing director of An Post Garret Bridgeman defended the price increase, arguing that it was necessary as the service works on a fixed cost – whether the postman or postwoman delivers one letter or three, the cost remained the same, but revenue was down.

“We’ve actually seen a 40% increase in the cost of delivering a letter since 2020,” Bridgeman told RTÉ Radio’s Morning Ireland.

“The reality is if we went out and we actually decreased the price of the stamp today, it wouldn’t increase people sending more mail because essentially what’s happening is people are using more electronic means, businesses are using email, they’re signing up for direct debits,” Bridgeman said.

“And you get your monthly gas, electricity bill, emailed to you, with the likes of the large multiples in terms of the supermarkets are doing their clubcards and everything online. So people are actually moving more and more to electronic means.”

Bridgeman added that An Post “don’t make big profits”, saying that the organisation makes about a four per cent profit margin on postal letters.

“All of that money is invested in our infrastructure, in our people, in our technology,” Bridgeman said.

“We really, really don’t like putting up the price.”

An Post said that all existing stamps with ‘N’ (National) and ‘W’ (Worldwide) or specific euro denominations will remain valid and fully useable after 27 February.