Philadelphia, Pennsylvania — A fuel supplier alleges that a distributor connected to some Freedom Fuel Network stations received nearly $4 million worth of gasoline without paying, offering a possible explanation for prices President Donald Trump publicly praised as unusually low.
Mansfield Oil Company filed a federal lawsuit Aug. 19 against KRSM Inc. and its president, Syed Kazmi, alleging the company obtained more than 1 million gallons from a Pennsylvania terminal between May and July but failed to pay for it. Court records confirm Mansfield is suing KRSM for breach of contract.
Mansfield says some of the fuel ultimately reached at least 10 stations affiliated with Freedom Fuel, which gained national attention after selling gasoline for $3.47 per gallon. Trump praised the network in July, saying its operators were lowering prices because they “love the U.S.A.” The White House also promoted the stations on social media.
KRSM denies wrongdoing, calling the case an accounting dispute involving incorrectly priced or duplicated invoices. Freedom Fuel itself is not named as a defendant and has not been accused of stealing fuel.
The lawsuit states that KRSM’s failure to pay enabled it to offer unusually cheap fuel. A federal judge Friday ordered KRSM and Kazmi to maintain at least $2.75 million in a bank account while the dispute proceeds.
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