A chain of gas stations promoted by the Trump administration last month for offering lower fuel prices in the Northeast is now at the center of a federal lawsuit alleging unpaid fuel costs. The Freedom Fuel Network, which operated 25 stations in the Philadelphia area, was highlighted by President Donald Trump in July for reducing gas prices ahead of the Independence Day holiday. However, a lawsuit filed this month claims some of the fuel sold by these stations originated from a dealer who never paid for it.
The case was brought by Mansfield Energy, a Georgia-based fuel supplier, against KRSM Inc., a New Jersey company, and its president, Syed Kazmi. According to the complaint, between May 21 and July 7, KRSM collected approximately 1.1 million gallons of fuel valued at nearly $4 million from a Pennsylvania fuel supply terminal under Mansfield’s account but failed to remit payment. The fuel was subsequently sold to locations affiliated with the Freedom Fuel Network, enabling the stations to offer prices lower than their competitors, the suit alleges.
“KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid plaintiff for such fuel,” the complaint states. Mansfield’s attorney, Urs Broderick Furrer, told reporters that despite the last fuel delivery occurring over five weeks prior, KRSM had yet to pay any of the outstanding balance. He noted that at least 10 of the gas stations receiving the unpaid fuel are listed on the Freedom Fuel Network’s website.
KRSM and Kazmi have disputed the claims. Kazmi’s legal representative, Mauro Tucci, characterized the lawsuit as an “accounting dispute over fuel invoices mis-priced by Mansfield Oil.” The suit also notes that a data issue delayed Mansfield’s invoicing until early July, after which the parties exchanged draft payment requests that KRSM’s bank subsequently refused. Further phone communications reportedly included assurances from Kazmi that payment would be made, though no funds had been received at the time of filing.
The lawsuit does not name the Freedom Fuel Network as a defendant nor clarify the network’s ownership or Kazmi’s connection to it. A July trademark filing for the brand does not identify any owners.
Separately, a White House spokesperson confirmed there has been no direct interaction between the administration and KRSM or Kazmi. President Trump had publicly praised the Freedom Fuel Network on social media for helping lower gas prices in the Philadelphia area, describing the chain as “taking the lead” because “they love the U.S.A.” A White House video released in early July highlighted prices at one station selling gas for $3.47 per gallon, below the regional average near $3.99 at that time.
Since then, gas prices have risen amid renewed tensions in the Middle East, with the national average reaching $4.08 per gallon as of Wednesday, according to AAA. The dispute raises questions about the factors behind the Freedom Fuel Network’s competitive pricing during the recent period.