Mansfield Energy has filed a federal lawsuit in Pennsylvania alleging that gas stations operating within the Freedom Fuel Network were able to offer steep discounts because they never paid for the gasoline. The Georgia-based energy company claims that New Jersey fuel dealer KRSM and its president, Syed Kazmi, withdrew more than 1.1 million gallons of fuel worth nearly $4 million from a terminal between May 21 and July 7.
The New York Times reports that KRSM distributed the disputed fuel to stations operating under the Freedom Fuel Network banner, where motorists purchased it at significantly reduced prices. In July, President Trump popularized the network on Truth Social, praising 25 rebranded locations for slashing prices down to $3.47 per gallon while regional averages hovered near $4.00.
Related Stories
Get the Latest Automotive & Sports News from Vince's Auto Body Inc
Receive the latest updates on automotive industry, football, basketball, economy, and technology news directly in your inbox. It's free!
SubscribeThe administration previously lauded the chain for voluntarily cutting margins to assist motorists during price spikes caused by the war in Iran. However, Mansfield Energy presents an entirely different explanation for the chain's ability to heavily undercut regional competitors in the retail fuel market.
"KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid plaintiff for such fuel," Mansfield Energy stated in court filings. Counsel representing Mansfield claims the fuel was delivered to at least 10 locations linked to the network, naming KRSM and Kazmi as defendants in the case.
Defense Denies Allegations As White House Distances Itself
Attorneys representing KRSM and Kazmi strongly deny the allegations, framing the ongoing legal battle as a simple commercial disagreement over billing accuracy. The defense counsel counters that the lawsuit stems from an accounting dispute regarding mispriced fuel invoices issued by Mansfield Energy.
Court records indicate that a technical data error delayed initial invoicing until July. While Mansfield claims that KRSM's bank refused payment drafts after draft billing requests were issued, defense lawyers maintain that payment commitments remain part of an ongoing commercial negotiation.
The White House has officially distanced itself from the legal dispute, stating that the administration has zero contact or business dealings with KRSM or Kazmi. Officials reiterated that the Freedom Fuel Network operates strictly as an independent private venture separate from any government administration initiatives.
As the legal proceedings continue in federal court, the case puts a spotlight on the supply chains behind heavily discounted fuel retail operations. Both legal teams are expected to present further documentation regarding the disputed terminal withdrawals and fuel distribution records.