UK postal service provider Royal Mail caps stamp sales after price hike plan sparks panic buying

Royal Mail, Britain's postal service provider, has capped the number of stamps shops can buy after a price hike announced last month triggered panic buying, according to the Press Association.

The price hike, which will increase the cost of sending a letter first class by 30 percent to 60 pence (95 cents), and second class by 39 percent to 50 pence, comes at a time when ordinary Britons are struggling with high inflation and slower wage growth, Reuters reported.

Royal Mail has limited the number of stamps supplied to retailers ahead of the price rise at the end of April to "protect Royal Mail's revenues," according to a statement from the service.

"We put arrangements in place in February with all our major retailers to ensure that they have adequate stocks of stamps to meet genuine customer demand," Royal Mail said.

The restrictions have sparked outrage, according to The Telegraph.

Ian Murray, the shadow postal affairs minister, said he would write to Ofcom, the postal regulator, urging it to investigate the “shameless profiteering at the public's expense” by Royal Mail, the newspaper said.

“The disproportionate rise in the cost of stamps will have a significant impact on small businesses and those on low incomes,” he said.

“It’s understandable that those who will bear the brunt of the increase will want to stock up before the price increase."

Official data released last month showed the UK economy contracted more than expected in the first quarter of 2011, with real household disposable incomes falling by 1.2 percent, the biggest drop in nearly 35 years.