THE price of stamps for the island and UK will increase by 2p from April 4.
Isle of Man Post Office has blamed the rise on rising costs – in fuel, distribution and from other partners.
Chairman Alan Crowe MLC said: ‘We are fighting to contain costs as much as we can and therefore our increase is as low as was possible.
‘Royal Mail is increasing its stamp prices by five pence and we are only increasing ours by two pence.
Not only is our increase less but our prices will still remain one of the lowest in Europe.
‘An increase illustrates the need for our core business to counteract the current fall in volume at a loss of £1m per year.’
From April 4, the cost of a local stamp will be 37p and a stamp for a letter to the UK will be 38p.
In the UK, the price of a first class will increase by 5p to 46p and the price of a second class stamp will rise by 4p to 36p.
The Post Office has also announced price changes for the following services: guaranteed next-day special delivery, airmail letters, international packets, surface mail and ancillary services and Airsure.
But residents will have to wait until March 28 to find out how it will affect them.
Mr Crowe said the Post Office would continue to diversify commercially with the introduction of new products and services.
‘These are still in keeping with the traditional postal market but incorporate the changes in digital technology,’ he said.
‘We are seeing a 10 per cent decline in mail volumes and this is forecast to continue.
‘Therefore the need to bridge the gap in revenue is more relevant than ever, especially as we contribute 50 per cent of our profits each year to the Isle of Man Government.’
The last time the Isle of Man Post Office increased the price of stamps was in March 2010.
The price of local and UK stamps rose by 3p.
Last Christmas was the first time in three years the Post Office did not reduce the cost of a local stamp by 1p.