RALEIGH, (SGRToday.com) - Postal service price reductions that took effect earlier this month will cost the organization $2 billion according to a U.S. Postal Service news release.

The reductions were mandated by the Postal Regulatory Commission. The reductions ended a surcharge the Postal Service had been allowed to impose since 2014.

“Given our precarious financial condition and ongoing business needs, the price reduction required by the PRC exacerbates our losses,” said Megan J. Brennan, Postmaster General and CEO in the release.  “This unfortunate decision heightens the importance of the review of our ratemaking system which our regulator is required to conduct later this year.”

The full statement can be found at usps.com.