New Delhi: The department of Posts has revised tariffs for Speed Post service. Now sending packets within a city has become cheaper by 40 per cent while couriering parcels over long distance has become more expensive.

The DoP has reduced rates of local Speed Post for packets weighing less than 50 g by 40 per cent. A 50-g packet can now be sent anywhere within a city for Rs12 instead of Rs20 being charged at present. The move is aimed at capturing market share from private courier companies, which are already offering local delivery at around Rs10 for a 50-g packet.

The move comes even as DoP is facing a budget deficit of nearly Rs1,400 crore.

Officials said the tariff reduction will not have any impact on DoP''s revenues as volumes are expected to grow.

For long distance Speed Post service the rates have been raised for higher weight categories. A 500-g packet to be sent over 2,000 km will now cost Rs80 instead of Rs70 at present.

Similarly, a 500-g packet sent to a destination that is over 1,000 km away will now cost Rs70 instead of Rs60. The department blamed the increase in transportation costs for the hike in long distance Speed Post tariffs. The revised tariffs will come into effect from today.