Trump Is Touting Cheap 'Freedom Fuel' Gas - Experts Say the Math Doesn't Add Up

President Trump is promoting Freedom Fuel Network stations as an easy way to help you keep more of your money, but experts question whether the math makes sense. Drivers have been lining up outside Freedom Fuel Network gas stations in Philadelphia, attracted by the advertised gas prices that fall 10 to 20 cents per gallon below what other stations are charging.

But according to experts, the promise of cheap fuel available at these gas stations may not be all that it's cracked up to be.

What are the Freedom Fuel Network stations?

Freedom Fuel Network stations offered unusually low fuel prices when they opened. Of the 29 stations participating through Pennsylvania and South New Jersey, many changed their branding seemingly overnight to reflect their participation in the new network.

On July 7, the White House's official account posted on X, announcing that "The FIRST Freedom Fuel Network gas station has LANDED in Philadelphia," and that the station lowered "the price at the pump to $3.47 for our 47th President."

The post credited Trump with the lower prices. "President Trump is leading the charge to lower gas prices this summer - putting more money in your pocket," it read.

Who owns the Freedom Fuel Network

Not much is known about the Freedom Fuel Network. The gas stations offer discount gas, and at least six of the stations are managed by Shamikh Kazmi, a businessman. Blue Owl, a publicly traded asset manager, owns those six stations. Trump has previously owned as much as $25 million in Blue Owl stock, but his most recent financial disclosure indicates he has sold almost all of his shares.

The questionable past of the Freedom Fuel Network's connections

In May, before the Freedom Fuel Network's existence, the New Jersey Department of Environmental Protection (DEP) placed a $429,900 penalty on 17 stations that Kazmi managed and Blue Owl owned.

Approximately half of the penalty applied to issues at gas stations that have become part of the Freedom Fuel Network, and they related to issues including the underground tanks storing fuel, submitting false information to register the tanks, and issues with air pollution control.

The NJ DEP wrote that the stations "repeatedly, significantly and substantially failed to comply" with state law, and that they didn't comply with previous enforcements.

Trump's praise for the Freedom Fuel Network

Despite the Freedom Fuel Network's vague history, Trump praised the gas stations for offering lower fuel costs while the war with Iran drove gas prices up.

"I am pleased to announce that a VERY smart Retailer, located throughout the Northeast, is stepping up," Trump wrote in a July 1 Truth Social post. "America has never been stronger than it is now, and Gas Prices will soon be back to the Record Low Prices Americans enjoyed at the pump before our very successful 'excursion' in Iran."

Freedom Fuel Network's unusually low opening gas prices

Freedom Fuel Network stations initially charged $3.47 per gallon of gas when they opened in July; that price was about 40 cents per gallon below the market costs at the time.

The company posted a message on its website remarking on its explosive growth, indicating that some stations' average volume had increased by more than 50%, while some locations experienced surges of over 100%.

A FuelTrust analysis prepared for the Washington Post revealed that operating at such low prices could have cost the Freedom Fuel Network $24,000 per day in revenue compared to its competitors. This equates to as much as $336,000 in revenue. 

The question behind the low fuel prices

Experts say the math behind the abnormally low fuel prices doesn't add up. Patrick De Haan, head of petroleum analysis at GasBuddy, said that while some gas stations offer cheap gas on their opening day, he had never seen so many gas stations change their branding and prices overnight.

Tom Kloza, petroleum analyst and chief energy adviser at Gulf Oil, noted that gas stations aren't able to sustain such low prices for long, and the stations may have to either close down or raise their prices dramatically. Kloza estimated that break-even prices for gas were about $3.60 per gallon, and selling gas at a loss for more than a day doesn't make business sense.

According to Jeff Lenard, spokesperson for the National Association of Convenience Stores, gas stations were paying about $3 per gallon, plus they have to pay about 76 cents per gallon to cover Pennsylvania federal and state taxes. In New Jersey, stations paid about 57.5 cents in taxes. Plus, they had to pay operating costs, leaving questions about who is actually absorbing those losses.

Bottom line

Saving money at the pump is appealing, but it's unlikely that the Freedom Fuel Network's low prices will stay that low for long. Many stations in the network have since increased their prices above $4 per gallon. A statement on the Freedom Fuel Network website indicates that the network is "proudly lowering its prices to benefit our community and strengthen our local economy."

If you're trying to save money on gas, sites like GasBuddy may help you identify the lowest prices in your area. Being vigilant with your spending and planning out your purchases, like when you fill up, may help you cope with increasing bills and expenses.

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