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Innocent Ruwende Senior Reporter
REDAN Petroleum (Pvt) Ltd has been given a 72 hour ultimatum by its clients to reverse its decision to debase the value of coupons they bought before the increase in fuel prices or face legal action.
The 50 clients stand to lose over $200 000 if Redan does not reverse its decision.
Redan Petroleum has been accused of swindling customers, who had been holding on to coupons, by reducing the quantity of fuel that is redeemable following Government’s decision to increase fuel prices a fortnight ago.
A coupon which could redeem 200 litres, now only fetches 80 litres.
The new retail prices are $3,31 per litre (previously $1,34) for petrol and $3,11 per litre (previously $1,49) for diesel.
Redan, on January 12, issued a statement saying it had reduced, for example, 20 litres of fuel coupons to eight litres and 200 litres to 80 litres after the price increase.
On 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 yesterday confirmed that they had served Redan with a letter following instructions from their clients.
“Our clients advise us that at different times during the period from December 2017 to December 2018, they individually purchased petrol and diesel fuel coupons directly from your company in terms of contracts severally entered into between your company and our clients,” reads the letter.
“They were issued with fuel coupons indicating the exact quantities to which they were individually entitled to. The express terms of the contract were that your company would not be liable for any loss or damage to the coupons. The coupons would be valid for a limited time after which they would be irredeemable.”
The lawyers argued that the implied terms of the contract were that the company would allow their clients access to fuel equivalent to the quantities reflected on the face of the coupons at Puma Service Stations and any other stations Redan would designate.
“Revoke the public notice that you issued to the public in terms of which you illegally debased fuel coupons issued to our clients and members of the public,” wrote the lawyers. “Allow our clients to have access to the fuel in the quantities reflected on the coupons issued on them.
“Should your company fail to honour its coupons and for value, and this demand within a period of seven days of receipt of this letter, we have strict instructions to institute legal proceedings against your company for appropriate relief.”
Online Reporter