The Gas Was Cheap Because The Fuel Bill Wasn't Paid, Supplier Alleges
Trump praised a network selling gas 40 cents below market. A lawsuit says a distributor behind some of those gallons left nearly $4 million unpaid.
WASHINGTON—A fuel supplier alleges that the secret behind some gasoline sold through the Trump-praised Freedom Fuel Network was a dependable cost-control measure: the distributor did not pay nearly $4 million for it.
The network began selling gas for $3.47 a gallon in July, a price chosen to honor the 47th president and about 40 cents below the surrounding market. Trump called the retailer very smart and urged others to follow its patriotic lead. Freedom Fuel expanded from 25 stations to 29 while economists continued overlooking the retail possibilities of an outstanding invoice.
Mansfield Oil says in a federal lawsuit that KRSM picked up roughly 1.1 million gallons from a Pennsylvania terminal between May and July and did not pay. A Mansfield attorney said some of that fuel reached at least 10 stations listed by Freedom Fuel. KRSM denies the allegation and calls the case an accounting dispute involving incorrect invoices.
The lawsuit does not name Freedom Fuel or any of its stations as defendants, accuse the network of wrongdoing, explain KRSM’s relationship to the network, or say how much of the disputed fuel reached its pumps. The White House says it had no dealings with KRSM. Presidential quality control ended with recognizing a low number and sharing it.
A federal judge has ordered KRSM to keep at least $2.75 million in an account while the dispute proceeds. The pumps delivered a simple lesson in American energy independence: gas becomes much more affordable when somebody farther up the supply chain is still waiting for the money.
Sources: The Washington Post: Trump lauded low prices at Freedom Fuel. A supplier says some gas wasn't paid for.The Philadelphia Inquirer: Some Freedom Fuel stations sold cheaply because their owner never paid for it, lawsuit claims
