When Freedom Fuel Network opened in the Northeast in July, its gas was selling for well under the national average. The unusually low prices, combined with White House social media support for the new chain, were suspicious enough, and a recent lawsuit is making the strange set of circumstances even harder to ignore.
A lawsuit filed Aug. 19 says those prices were so low because the fuel was stolen before it was sold.
Here's what to know
The Drive reported that Gainesville, Georgia-based Mansfield Oil Company sued New Jersey fuel distributor KRSM after 1.1 million gallons of gas valued at $4 million allegedly went unpaid for and some of it was sold at a discount to Freedom Fuel Network.
Mansfield says the fuel ended up at no fewer than 10 of Freedom Fuel's 29 locations across New Jersey and Pennsylvania. The case is in federal court in the Eastern District of Pennsylvania.
Mansfield says KRSM's unpaid fuel could explain Freedom Fuel's pricing, which came in about 30 cents a gallon below the national average. The New York Times reported that Urs Broderick Furrer, the lawyer representing Mansfield, said KRSM had not paid anything toward the amount owed.
"KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil," President Syed Kazmi's lawyer, Mauro Tucci, said, per the Times.
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More background
Freedom Fuel drew attention early on with support from prominent political accounts and figures. According to The Drive, the White House X account promoted the chain's first retail site, and President Donald Trump praised the company for "stepping up" as "a VERY smart Retailer." The federal government denied subsidizing the company or being involved with it.
The ownership picture of the chain remains murky. KRSM and Kazmi say they are not connected to Freedom Fuel, and a White House spokesperson told the Times that the administration "has had zero contact or dealings with the defendant: KRSM Inc or Sayed Kazmi."
The fossil fuel industry carries costs that are not quantifiable on gas station signs. Coal and natural gas power plants contribute to air and water pollution linked to asthma, heart disease, cancer, and premature death, and they keep energy costs high for households that remain tied to these fuel sources instead of more abundant energy from sunlight and wind. Industry lobbying can also delay cleaner, cheaper energy solutions that would better protect families and lower bills.
What's being done?
Judge Gerald Austin McHugh ordered KRSM to maintain no less than $2.75 million in a bank account during the litigation. "Mansfield is seeking at least $3.998 million plus interest, costs, and other damages," MDM Distribution Intelligence stated.
"Despite the fact that the last delivery was more than five weeks ago, KRSM has not paid one dollar towards the $4,000,000 that KRSM owes Mansfield," Furrer said, per the Times.
Where can I learn more?
The allegations around Freedom Fuel point to bigger questions about how fossil fuel companies operate and how the industry sells itself to the public. The articles here look at that wider picture, from fresh investment in oil and gas to misleading claims about sources and mounting evidence of fuel's hidden costs.
• Major oil companies saw fossil fuel investment surge again as markets signaled strong returns.
• In Oregon, NW Natural faced scrutiny after deceiving lawmakers and residents about its gas source.
• The LNG industry drew fire when its climate footprint proved worse than coal's.
This story of unusually cheap fuel prices is only part of a much bigger story about accountability, public health, and the long-term cost of energy.
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