Chronicle Editor
Natasha Chamba, Business Reporter
REDAN Petroleum (Pvt) Ltd has reversed its earlier decision to debase the value of coupons and cards bought before the increase in the price of fuel.
The move comes hard on the heels of a 72-hour ultimatum the petroleum company had been given by its clients that it should not debase the value of coupons bought before the increase in fuel prices as doing so was tantamount to inviting legal action.
In a statement, Redan said as from Tuesday, all coupons and cards issued before January 12, 2019 could be redeemed at full litre volume over the next 90 days.
“Redan is pleased to advise our valued customers that our discussions with the Government and relevant authorities, concerning the impact of recent fuel excise duty increase on coupon volumes, have resulted in a favourable resolution,” reads part of the statement.
“The Government has kindly agreed to waiver the duty increase on all fuel coupons and cards issued before 12 January 2019. This means that from 2PM, 29 January 2019, all coupons and cards issued before 12 January 2019 can be redeemed at full litre volume within the next 90 days.”
On January 12, the petroleum company announced that it had reduced, for instance, 20 litres of fuel coupons to eight litres and 200 litres to 80 litres following the recent increase in fuel prices.
The Government increased the retail price of fuel from an average of $1,37 a litre to $3,11 and $3,31 for diesel and petrol respectively with a view to promoting viability of the country’s petroleum sector.
In order to curb inflationary pressures that usually come with the impact of increasing the fuel price, Finance and Economic Development Minister Professor Mthuli Ncube announced that Government was providing relief through refund of excise duty on fuel consumed by registered businesses in manufacturing, mining, agriculture and transport sectors.
The fuel price increase has also had a positive impact in improving the availability of the precious liquidity in the market and thus curbing the long queues that had become rampant across the country.
Redan said it was now updating its system to allow customers to be able to redeem the coupons and cards for which the waiver applies.
“We are also working on a solution for our customers who had already redeemed their coupons and cards at the debased value,” Redan said.
Last Wednesday, Alex F & Associates, representing 56 clients, wrote to Redan threatening legal action if the quantities of fuel reflected on the coupons were not restored within 72 hours.
Lawyer Mr Godfrey Nyamukuwa on Monday confirmed that they had served Redan with a letter following instructions from their clients.
The petroleum company urged all members of the public that have been affected by the development to contact them.
— @queentauruszw
Online Reporter