Shongedzai Mugwagwa

Leading Petroleum Company, Redan has reversed and restored their fuel coupons’ value following President Emmerson Mnangagwa’s assurance that his Government will rebate petroleum companies after he increased fuel prices.

Clients had taken Redan to court for their decision to devalue their coupons which customers had purchased.  Alex Majachani of Alex F and Associates was representing 56 clients challenging Redan’s decision.

In a statement, Redan assured its clients that it has decided to restore the fuel coupons’ values after they engaged Government, which accepted a tax relief to enable it to redeem coupons at full value.

“To show its commitment to deliver on its obligations to its customers, our client engaged the relevant authorities. We are pleased to advise that our client has managed to obtain a tax relief and your clients shall redeem their coupons for the full value,” read part of the letter to Majachani by Redan’s lawyers, Mawere and Sibanda.

In a statement, Redan said: “Redan is pleased to advise our valued customers that our discussions with the government of Zimbabwe and relevant authorities, concerning the impact of recent fuel excise duty increase on coupon volumes have resulted in a favourable resolution. The government has kindly agreed to waive the duty increase on all fuel coupons and cards issued before January 12, 2019.”

Redan said the coupons should, however, be redeemed at full litre volume value within 90 days.

Redan has been accused of swindling its customers who were holding coupons by changing the quantity of fuel that is redeemable.

A 200 litre coupon now was now redeeming only 80 litres while 10 litres had been debased to 4 litres.

Redan had attributed the increase to SI 10 of 2019 that resulted in the increase of fuel prices.