President Donald Trump is promoting a new chain of gas stations that is selling fuel for $3.479 a gallon, far below the national average and even below many wholesale costs.
The problem is that the discount appears to be available only at a small number of stations in Pennsylvania and New Jersey, and it is still unclear who is behind the operation. Freedom Fuel did not respond to requests for comment, and CNN was unable to confirm that all of the stations in the network were open.
A price that stands out
Trump highlighted the July 3 opening of 25 “Freedom Fuel” stations in a Truth Social post last week, saying other retailers should follow the lead. The White House said the company is private, receives no government support, and is not being subsidized by the administration or any other person or entity.
The national AAA average was $3.85 per gallon Thursday, while the Pennsylvania average was $3.99. That makes the $3.479 price at Freedom Fuel a noticeable drop for drivers, even as broader gas prices remain above prewar levels.
| Fuel Price Snapshot | Price | Context |
|---|---|---|
| Freedom Fuel | $3.479/gallon | Below market prices and wholesale costs |
| AAA National Average | $3.85/gallon | As of Thursday |
| Pennsylvania Average | $3.99/gallon | As of Thursday |
Questions about the business model
Station owners normally set their own prices, and most gas stations are small businesses that operate on thin margins. Many rely heavily on convenience store sales, which makes fuel priced below cost hard to explain.
Jeff Lenard, a spokesperson for the National Association of Convenience Stores, told CNN there is no way the stations could be profitable or sustainable at that price. “There’s no way those stations could operate the way a traditional retailer would, without at least breaking even on fuel,” he said.
CNN found a Delaware incorporation filing for Freedom Fuel Network dated June 23, but no owner was listed. The White House told CNN that the company is simply reducing its margin to make gas more affordable in the Philadelphia and New Jersey area.
Drivers notice the savings, rivals feel the pressure
In Bristol, Pennsylvania, drivers said they were drawn by the low price, not by the politics around it. James Lymer said he heard about the station on social media and drove there to fill up nearly 16 gallons of gas for $55, saving about $8.
“I love it, because I’m retired, and every little bit helps,” he said. Another driver, Bud Shank, said lower fuel prices do not change his view of Trump, adding, “I still wouldn’t be a supporter (of Trump).”
Nearby competitors are already feeling the effect. Muhammad Irfan, who owns Red Lion Fuel just down the road, said the Freedom Fuel opening cut into his sales, and he cannot match the price without losing money.
Major chains can sometimes sell below broader market levels because of volume. Lenard noted that Costco, whose nearest store in Bristol was also selling gas for $3.479 a gallon, can negotiate different wholesale pricing because it buys fuel at a much larger scale than a typical station.
For independent station owners, that scale advantage is not available. Irfan said he does not know whether any government, Trump supporters, or other backers are helping fund the low prices, but if they are, he считает it unfair.