Post Fiji seeks tariff review or deregulation as mail volumes decline

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Post Fiji Pte Limited has formally requested the Fijian Competition and Consumer Commission (FCCC) to consider either increasing domestic postal tariffs or deregulating postal services altogether, citing sharp declines in mail volumes and rising operating costs.

In a submission dated November 14, 2025, to FCCC, Post Fiji Chief Executive Officer Isaac Mow said digital transformation has significantly weakened the sustainability of the traditional postal business.

“This submission outlines the commercial, economic, and industry-wide factors that have significantly affected the viability of the domestic postal business,” Mr Mow wrote.

“Post Fiji is seeking either a justified increase in postal tariffs or the deregulation of domestic postal services.”

Post Fiji said letter mail volumes have continued to fall due to email, online billing, digital banking, and automated notifications — a trend it describes as irreversible.

According to the company, the decline mirrors global trends affecting national postal operators.

“Postal operators around the world have experienced sharp declines in letter mail volumes,” the letter noted, adding that many nations have introduced tariff increases, deregulated markets, or shifted to cost-recovery models to survive.

Post Fiji highlighted that Australia, New Zealand, the United Kingdom and several European Union countries have already deregulated parts of their postal sectors, allowing more flexible pricing and service restructuring.

At the same time, the company said operational costs in Fiji have risen significantly across fuel, transport, labour compliance, rentals, ICT systems, and security — pressures that are not reflected in the current regulated tariffs.

Post Fiji operates 58 postal outlets nationwide, including rural and maritime locations where delivery costs are higher.

“The Universal Service Obligation becomes increasingly difficult to sustain under fixed tariff structures while traditional mail volumes continue declining,” the letter stated.

Post Fiji has asked FCCC to consider one of two main regulatory pathways – a deregulation of domestic postal tariffs — allowing flexible pricing, innovation, and quicker adaptation to market changes and a tariff increase — helping recover costs, sustain universal service obligations, and maintain service standards.

“Deregulation would align Fiji with international best practices,” Mr Mow said.

“Alternatively, a reasonable tariff adjustment is necessary to ensure financial viability without reducing essential services.”

The company warned that without reform, continuing current service levels will become “increasingly unsustainable”.