Postage Rates for Letters and Parcels to Increase from 1 July
On Tuesday, 27 May, the Minister of Regional Affairs and Agriculture signed a regulation to increase the prices for sending letters and parcels via the universal postal service. The new postal price list will come into effect on 1 July. Also from 1 July, the price of Omniva’s commercial services in Estonia will be affected by the national VAT increase.
Starting from July, sending a standard letter within Estonia will cost €1.50, an express letter €2.60, and a registered letter €7.70. Sending a standard international letter will cost €3.50 and as a registered item, €8. Prices for maxi letters and parcels will also increase by approximately 20%, but the exact price will depend on the item’s weight.
The full new price list is available on Omniva’s website: https://www.omniva.ee/hinnakirjad-erakliendile
The last change in universal postal service prices was in May 2023. Since then, general price increases and wage growth have significantly raised the cost of providing postal services. At the same time, the usage of the universal postal service has declined, further increasing the unit cost of the service. The price increase is necessary to ensure the continued availability of high-quality postal services to everyone in Estonia.
In 2024, letter volumes via the universal postal service decreased by 23%, and parcel volumes via UPS by 54%. “Ten years ago, Estonians sent 5 million letters through our postboxes and post offices. Last year, around 700,000 letters were sent via postboxes and an additional 200,000 through service points – that’s less than one letter per person per year,” said Martti Kuldma, Chairman of the Management Board of Omniva.
“If the decline in postal volumes continues at this rate, the price increase will generate around €850,000 in additional annual revenue for Omniva. However, the service incurred a loss of €1.8 million last year. So, the price increase alone is unfortunately not enough to ensure the sustainability of the service. Network optimization is also necessary, and we are currently planning for that,” Kuldma added.
The universal postal service is a minimum-level service guaranteed by the state, which must be accessible to everyone in Estonia at an affordable price. The prices for the universal postal service are set by the Ministry of Regional Affairs and Agriculture with the approval of the Competition Authority. The provider of the universal postal service is selected through a public tender by the Competition Authority for five years. Currently, AS Eesti Post (Omniva) is the designated provider, with the contract valid until 2029.
The price increase mandated by the minister’s regulation applies only to Omniva’s universal postal services in Estonia. It does not affect prices for Omniva’s commercial services, such as parcel machines and courier services.
Impact of VAT Increase on Omniva Services
Omniva also reminds customers that, from 1 July, Estonia’s VAT rate will increase from 22% to 24%. This VAT increase does not affect prices for universal postal services, which are VAT-exempt. However, it will apply to Omniva’s commercial services.
New Weight Limit for Shipments to Denmark
Starting 1 July, a new weight limit will apply to international shipments to Denmark – the maximum allowed weight per shipment will be 20 kg.