Those dubious 'Freedom Fuel' gas stations were found to be selling stolen fuel, according to a lawsuit.

      In July, a new gas station chain named Freedom Fuel Network emerged in the Northeast with notably low prices. It quickly gained attention, supported by promotions from the White House’s official X account and praise from President Donald Trump, who called the company “a VERY smart Retailer” for “stepping up.” The federal government denied subsidizing Freedom Fuel or having any connection with the company, leading many to question how it could offer gas at 30 cents per gallon below the national average.

      A recent lawsuit may provide an answer: The gas was allegedly stolen.

      The Mansfield Oil Company from Gainesville, Georgia, has filed a suit against New Jersey-based distributor KRSM, claiming that KRSM failed to pay for 1.1 million gallons of fuel, worth $4 million. It's asserted that KRSM then sold some of this gas to Freedom Fuel at discounted prices, enabled by its failure to pay Mansfield. This could explain the low prices of Freedom’s gas.

      “Despite the last delivery being over five weeks ago, KRSM has not paid a single dollar of the $4,000,000 owed to Mansfield,” stated Urs Broderick Furrer, the attorney for Mansfield, in a quote from The New York Times. While it remains uncertain where the 1.1 million gallons ended up, Mansfield suspects that some of it was received by at least 10 of Freedom’s 29 locations in New Jersey and Pennsylvania.

      Meanwhile, Mauro Tucci, the lawyer for KRSM President Syed Kazmi, stated that “KRSM disputes the allegations in this case, which revolves around an accounting dispute over fuel invoices mis-priced by Mansfield Oil.” Mansfield claims it couldn’t invoice KRSM until late July due to a data error, and that KRSM ultimately rejected the bill. According to Mansfield, Kazmi later indicated over the phone that he would make the payment, but he did not follow through.

      Additionally, since the launch of Freedom Fuel Network and despite support from the Trump administration on social media, there has been uncertainty about the actual ownership of the chain. Both KRSM and Kazmi deny any association with it. A White House spokesperson informed The Times that “the Administration has had zero contact or dealings with the defendant: KRSM Inc or Syed Kazmi.”

      Mansfield's lawsuit was filed on August 19 in the U.S. District Court for the Eastern District of Pennsylvania. Judge Gerald Austin McHugh has mandated that KRSM maintain a minimum of $2.75 million in a bank account during the litigation, and Mansfield is seeking “at least $3.998 million plus interest, costs, and other damages” from KRSM, according to MDM Distribution Intelligence.