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Guernsey Post is putting up all of its prices for sending letters, and its tariffs for posting small parcels to the UK, from the beginning of next year.
The company said the price rises have been driven by "substantial increases from Royal Mail".
It's said that Royal Mail is now charging Guernsey Post an additional £4m over a three-year period.
Guernsey Post is also facing substantial price hikes in transportation charges to and from the islands.
Boley Smillie, Chief Executive of Guernsey Post said these increases are pushing the utility into its first 'loss-making position' for more than a decade.
“We have done and will continue to do everything we can to improve our efficiency, but even with these changes the company will move into a short- term loss-making position for the first time in 11 years," he said.
Pictured: Boley Smilie, Chief Executive of Guernsey Post.
"Our trading position has become much more challenging in the context of high inflation, and some unprecedented increases in costs from our suppliers. We have a clear plan and this loss-making position will be short term as we work on ways to improve our efficiency. The most significant change we are making is the investment in parcel sorting automation which will be installed next year.”
In previous, recent years, Guernsey Post has returned surplus profits to the States of Guernsey. This amounted to £0.5million earlier this year and £1.3million last year.
The new postal tariffs which will be charged from Thursday 5 January 2023 include:
Guernsey Post says the average Bailiwick household spends around £1.25 per week on mail delivered locally and exported to the UK and Internationally.
The price increases announced today, on average, amount to an additional £0.13 per week says the utility.
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