President Donald Trump has been publicly promoting a network of 25 gas stations branded as 'Freedom Fuel' in Pennsylvania and New Jersey, but the identity of the owners and the business model behind the low prices remain shrouded in mystery. The stations are selling gasoline at prices well below the regional average, a move Trump has used to pressure other retailers to cut their own prices.
A White House official confirmed to The Hill that the Freedom Fuel Network is a private company with no federal funding or administrative involvement. The network's website lists the 25 locations but offers scant additional details. State records show that a Freedom Fuel Network LLC was incorporated in Delaware on June 23, but they provide little insight into the company's leadership or financing.
Trump first promoted the initiative in a July 1 social media post, writing that 'the Freedom Fuel Network will be lowering gas prices at 25 FREEDOM FUEL Stations across the Greater Philadelphia Area.' Nearly a week later, the White House amplified the message, posting that 'the FIRST Freedom Fuel Network gas station has LANDED in Philadelphia, lowering the price at the pump to $3.47 for our 47th President.' White House spokesperson Taylor Rogers called the company 'a patriotic company doing a good thing for drivers.'
The $3.47 price tag is significantly lower than the average gasoline prices in Pennsylvania and New Jersey, which stood at $4 and $3.92 per gallon, respectively, on Friday, according to AAA. However, data from price tracker GasBuddy indicates that prices at these stations have already risen to at least $3.57 per gallon. A White House official said prices will fluctuate based on market conditions.
Industry experts question the viability of selling gasoline at such low levels. Tom Kloza, chief oil analyst at Gulf Oil, said the break-even price for gas stations in that market is about $3.60 per gallon. 'It's not a working business plan to sell gasoline at a loss for more than like a day,' Kloza said. Jeff Lenard, spokesperson for the National Association of Convenience Stores, put the break-even price even higher, factoring in federal and state taxes and operating costs. He noted that stations in Pennsylvania pay about 76 cents per gallon in taxes, while New Jersey stations pay about 57.5 cents.
Lenard emphasized that gas stations have limited control over pump prices, despite public frustration. 'Obviously everybody's frustrated by high gas prices,' he said, adding that there are 'misperceptions' about how much sway retailers actually have.
The Freedom Fuel stations represent a tiny fraction of the nation's 123,000 convenience stores that sell fuel. Pennsylvania has 3,656 such stores, and New Jersey has 1,443. Trump's push for lower prices comes amid broader political pressure on affordability ahead of the midterm elections. Republicans are feeling the heat as gasoline prices remain elevated, even after falling from wartime highs during the conflict with Iran. The national average is about $3.89 per gallon, down from over $4.50 during the war but still above the prewar average of $3.
Trump has repeatedly called on gas retailers to drop prices, warning of 'big problems' if they don't. In a social media post last month, he wrote, 'Gasoline Retailers must get their Prices down, IMMEDIATELY! ... If Retailers don't do this, big problems lie ahead!'
For more on Trump's actions and their political implications, see our coverage of his ousting of election commissioners and Axelrod's warning about midterm interference.
