[Omah]

http://www.bbc.co.uk/news/business-17522500

A first-class stamp will cost 60p from 30 April after the regulator removed price controls on Royal Mail.

A second-class stamp will cost 50p - some 5p below the top price allowed under the changes made by Ofcom.

The regulator has allowed Royal Mail to set the price of first-class and business mail, claiming that the future of the universal service was at "severe risk" without relaxing controls.

A first class stamp currently costs 46p and a second class stamp costs 36p.

Over the next seven years, the price of second-class stamps will be capped at 55p but this limit could rise with inflation each year.

Ofcom said that changes needed to be made to price limits, because the future of the UK's universal, six-day-a-week postal service was "at severe risk" as people switched to using text messages, e-mails, and online messaging.

Royal Mail will now decide exactly how much to charge for stamps.

The changes will mean:

Royal Mail, not the regulator, will set prices on the majority of products, including first-class and business mail

Second-class stamps must not be charged at more than 55p. This limit will rise in line with the Consumer Prices Index (CPI) measure of inflation for each of the next seven years

Small parcels and large letters weighing up to 2kg sent second class will also eventually have a price cap, but not in 2012-13

There will be some control of what Royal Mail can charge competitors to access its network

Royal Mail delivered 16 billion letters to around 28 million addresses last year. However, since 2006, there has been a 25% decline in postal volumes with further falls expected.

Royal Mail's letters business made a loss of £120m in 2010-11.

With a price hike like that, "further falls in postal volumes" are as sure as day follows night .....