Redan restores fuel coupons value

REDAN Petroleum has given in to pressure and reversed its decision to debase fuel coupons following President Emmerson Mnangagwa's decision to hike fuel prices by 150% three weeks ago.

The decision follows a letter by lawyer Alex Majachani, of Alex F & Associates, representing 56 clients demanding that Redan reverses its decision within 72 hours or face legal action.

In a statement, Redan said it had engaged government, which had 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 waiver the duty increase on all fuel coupons and cards issued before January 12, 2019."

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