Gasoline prices are rising due to the war with Iran, leaving many Americans wondering how they will budget for the additional costs. But now even one of the cheapest retailers is adding to the problem, as Amazon is adding a 3.5% fuel and handling fee to its charges. These additional fees will apply to third-party sellers who use Amazon’s order fulfillment services. Payments are expected to begin on April 17, 2026.
Amazon’s everyday customers aren’t technically affected by the new fee, but they could see prices go up anyway. This is because third-party sellers adjust their prices. This means higher sales, so sellers can recoup some of the extra money they pay. If that happens, it could affect how much it takes to make Prime pay off over time. Consumers may not even notice that prices have increased, depending on what they are buying. But if more sellers follow suit, Amazon as a whole could start showing higher prices across the board.
Amazon’s new payment was announced in news outlets on April 2. The company made it clear that the move was temporary. In the past, the retail giant absorbed costs internally so as not to affect customers. But this move was made in an effort to recover some of that money. As of this writing, Amazon has not indicated how long the surcharge will last.
Amazon’s history of retail price increases
Amazon, which carries 15 of our favorite tech gadgets, isn’t the only company adjusting prices due to rising gas costs. The US Postal Service is adding a fuel service charge for the first time. Like Amazon, USPS says the move is temporary, and due to increased shipping costs. This new fee will affect Priority Mail and Ground Advantage package services. FedEx and UPS are also implementing new fuel-related charges for various services.
Amazon has actually made headlines for price hikes before. A 2025 story from the Wall Street Journal stated that hundreds of household items saw price increases within a few months. This analysis includes a collection of approximately 2,500 products, 1,200 of which are on average more than 5% more expensive than before. The WSJ also found that one of Amazon’s top competitors, Walmart, actually lowered prices for those same items by about 2%.
Amazon retracted the story at the time, noting that the selection of products analyzed was too small. Amazon also pointed out that most of the 2,500 2,500 items tested by the WSJ did not go up in price, and some even went down in price. Additionally, the company said that standard prices fluctuate frequently for general reasons, including competition, availability, and demand, among others. In the end, Amazon stuck to its claim that it remains highly competitive in everyday products.