Some Freedom Fuel stations have been able to sell gas cheaply because some fuel wasn’t paid for, a lawsuit claims
The suit by Mansfield Oil Company claims some Freedom Fuel gas stations have been able to sell gas cheaply at least in part because of stolen fuel.
A petroleum distributor has filed suit in federal court alleging it supplied $4 million worth of gasoline sold to multiple Freedom Fuel Network gas stations but has never been paid for it.
That is at least one reason, the civil suit claims, Freedom Fuel Network gas stations have been able to sell gas so cheaply after President Donald Trump touted the brand.
Georgia-based plaintiff Mansfield Oil Co. of Gainesville Inc. filed the civil suit against KRSM Inc. in U.S. District Court in Philadelphia earlier this month.
The suit says that Syed Kazmi, as president of KRSM, requested in May to buy gasoline from Mansfield at Energy Transfer’s Twin Oaks terminal in Aston, Delaware County.
KRSM then took 1.12 million gallons of gasoline and sold it to stations that are part of the Freedom Fuel Network. The price of the purchase was just shy of $4 million, according to the suit.
“KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid [Mansfield] for such fuel,” the suit said.
The suit does not specify which Freedom Fuel locations it says sold gas originally purchased from Mansfield.
The White House promoted Freedom Fuel when it launched its first location in July on Dreshertown Road in Upper Dublin Township, Montgomery County. The station initially sold gas for $3.47 a gallon, a nod to Trump being the 47th president.
“They are doing this because they love the U.S.A.,” Trump wrote on his Truth Social account on July 1.
“The administration has had zero contact or dealings with the defendant: KRSM Inc or Sayed Kazmi,” a White House spokesperson said in a statement Saturday.
Kazmi and his brother, Cherry Hill developer Shamikh Kazmi, are linked to at least eight of Freedom Fuel’s 29 locations. Neither could be reached for comment Saturday.
The Inquirer reported last week that six of the network’s New Jersey stations had racked up environmental violations with the state dating back to 2023.
» READ MORE: South Jersey Freedom Fuel stations racked up big fines before being promoted by White House
For its part, Mansfield says in the suit that it initially had difficulty sending invoices to KRSM, but managed to begin doing so by July.
The contract specified that KRSM was to pay the invoices in full within 10 days of receiving them or face 1.5% per month interest on the balance.
Mansfield said that, as of Aug. 17, it had not received any payment for the 150 loads of fuel KRSM purchased at the Twin Oaks terminal.
The suit cites breach of contract and five other counts in seeking $4 million for the fuel, interest, and attorney costs from KRSM.
The Kazmi brothers have been embroiled in at least two lawsuits related to previous gas station ventures, including a 2021 trademark dispute with BP American Inc. and BP Products North America Inc. Additionally, Petroleum Marketing Group Inc., a fuel distribution company, accused the brothers of stealing thousands of gallons of gas from the company.
The network expanded to 29 locations earlier this month, but one Philly station was nearly shut down by the city after it failed a license renewal inspection.
Freedom Fuel first launched with prices 40 to 50 cents a gallon cheaper than nearby stations, confounding experts and angering competitors due to the network’s apparent connection to the White House. Prices have since risen closer to other discount chains.
The White House has maintained it is not involved in Freedom Fuel’s operation or provided the company with any subsidies.
“Freedom Fuel Networks is a private company,” a White House spokesperson told The Inquirer in July. “They are not purchasing gasoline at a discount. The administration has not provided any funding. They are simply lowering their costs to make gas more affordable for drivers in PA and NJ.”
Baltimore Ravens assistant coach Randy Brown and former commodities trader Yoni Gontownik signed the company’s certificate of formation in Delaware and have not spoken publicly about the highly touted enterprise.
Freedom Fuel’s owners have been silent about their discount gas operation more than two months after the network was loudly promoted by the White House.
