The U.S. Postal Service announced Thursday that it is seeking approval for an 11% price increase on domestic Priority Mail and package deliveries beginning in January, citing rising fuel costs and mounting financial pressures.

The proposed increase requires approval from the Postal Regulatory Commission and would replace a temporary 8% fuel surcharge introduced in April. USPS said transportation expenses increased by $225 million in the 12 months ending September 30, driven by higher fuel prices.

The agency is also proposing an average 5.9% increase across domestic shipping services and an average 7.9% increase for international deliveries. First-class stamp prices are not expected to change in January. The cost of a stamp rose from 78 cents to 82 cents in July.

The latest pricing proposal comes as USPS faces mounting financial losses and warns that it may have to reduce services without additional federal assistance. The agency reported a $6.5 billion annual loss, an improvement from the $9 billion loss recorded during the previous 12-month period, but its cumulative net losses have exceeded $120 billion since 2007.

On Tuesday, USPS requested $2 billion from Congress to cover expenses associated with federally mandated obligations. Postmaster General David Steiner has warned that the agency could be forced to make significant cuts to retail post offices and other operations if lawmakers do not assist. He has described the Postal Service's business model as broken and said legislative action is needed to stabilize its finances.

The agency is also contending with a long-term decline in first-class mail, its most profitable product. Volume fell this year to its lowest level since 1965 as consumers increasingly rely on digital communications, while USPS continues to maintain a nationwide delivery network.

The incoming Democratic-led Congress, which takes office in January, will face decisions about whether to provide additional support. Republicans have held multiple hearings on the Postal Service's finances over the past two years.

USPS has already taken steps to limit spending, including suspending non-essential expenditures on travel, office supplies, and consultants in May. Earlier this year, it also temporarily suspended employer payments into a federal pension program.