President Donald Trump promoted the “Freedom Fuel Network” offering gasoline prices well below the average market price a week ago, yet it is not clear where or how this new chain debuted.
The gas stations, located in Pennsylvania and New Jersey, appeared just before July 4, a time when Americans fill up for holiday road trips.
“The first Freedom Fuel Network gas station has landed in Philadelphia, lowering the price at the pump to $3.47 for our 47th President,” the White House posted on X. “President Trump is leading the charge to lower gas prices this summer – putting more money in your pocket.”
According to AAA, the nationwide average gasoline price sits at $3.88 and the average gasoline price in Pennsylvania sits at just under $4.00.
“Just as I promised, oil prices are dropping fast, and gas prices at the pump are dropping too,” Trump said on Truth Social. “Gas prices will soon be back to record low prices Americans enjoyed at the pump before our very successful ‘excursion’ in Iran.”
After the U.S.-Israeli war on Iran started at the end of February, oil prices spiked, sending gasoline to a high of $4.63 a gallon in May.
Prices never reached the highest recorded average price of $5.02 in 2022 and have declined from their May peak. But they are still not at prewar levels and currently sit nearly 34% higher than in January.
As a result, inflation has accelerated this year, and there’s evidence that the oil shock is spilling over to non-energy sectors as core prices stay elevated too.
That’s been a political problem for Trump, who campaigned on reducing the cost of living, as well as Republicans as they head into midterm elections. The president is now eager to tout lower gas prices now that the Iran war has receded.
But gas station margins are slim, with about 13 cents a gallon in net profit, making the sudden appearance of prices 40-50 cents below the average at a new chain somewhat of a mystery.
However, the White House insists that the Freedom Fuel Network is able to aggressively price their gasoline independently.
“Freedom Fuel is a patriotic company doing a good thing for drivers in Pennsylvania and New Jersey by lowering their gas prices,” White House Spokesperson Taylor Rogers said. “They are doing their part to answer the President’s call to lower prices at the pump.”
Public records show that the Freedom Fuel Network was incorporated in Delaware in late June, shortly before its public rollout. Aside from its incorporation documents, little information has been released about the company’s ownership, management, financing or long-term business plans.
The Delaware Division of Corporations records show the company exists as a registered business entity, but only contains basic information, including the entity’s name, formation date and registered agent. It does not identify any company members, managers, or owners.
In addition to the LLC filing, a federal trademark application for “Freedom Fuel Network” was submitted on July 1, covering retail fuel and convenience store services. The trademark lists the applicant as Freedom Fuel Network LLC.
The company’s website displays the locations of the 25 gas stations operated by Freedom Fuel, as well as a contact page. The website does not include an “about us” page or further information on the company.
Freedom Fuel Network did not immediately respond to a request for comment.
The White House has stated that the company is owned and operated independently, but no additional financial details explaining the pricing strategy have been publicly released.
“The Administration is not involved in the company, nor has the Administration given the company any funding,” a White House official said. “There is no other entity or person subsidizing the lower gasoline costs… This retailer is taking the lead, others should follow.”
The post Meet ‘Freedom Fuel Network’ stations, a new chain with cheaper gas and mysterious origins appeared first on Fortune.
