On average, universal postal service prices will increase by one-fifth in the latest hike, with postage for standard letters set to increase from €1.30 to €1.50, and express letters from €2.30 to €2.60. Postage for international letters and packages, meanwhile, will increase by an average of 14 and 23 percent, respectively.

"Considering that Estonian residents mail less than one letter or postcard a year on average, this price increase will not pose a threat to the accessibility of the [postal] service," the ministry said in a press release.

According to Terras, the price hike will help improve universal postal services provider Eesti Post's financial position and ensure a quality, accessible postal service.

"The price hike will help reduce the company's losses, which in turn will allow letters and packages to continue being mailed and received all across Estonia," Terras said.

The regulation will enter into force on the third day after its publication in the State Gazette, after which it will be Eesti Post's responsibility to notify consumers in advance about changes to their pricing and when they will take effect.

Alongside the latest price hike, the ministry will also continue drawing up amendments to the Postal Act aimed at modernizing the funding model for Estonia's universal postal services.

Operating under the Omniva brand, Eesti Post is licensed to provide Estonia's universal postal services as well as deliver domestic and international letters and packages.

The provider of universal postal services is chosen for a five-year term through a public competition by the Competition Authority. The current contract with Eesti Post is valid through 2029.

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