Former President Donald Trump has publicly endorsed the Freedom Fuel Network, a group of 25 gas stations in Pennsylvania and New Jersey selling fuel at approximately $3.47 per gallon, a price point around 50 cents below the state averages.
The White House stated that the network is a private company not associated with Trump, which is voluntarily lowering its profit margins to offer more affordable prices. "The Administration is not involved in the company, nor has the Administration given the company any funding. There is no other entity or person subsidizing the lower gasoline costs," a White House official told ABC News.
However, industry analysts have raised significant doubts about the sustainability of these low prices. According to data reviewed by ABC News, selling gas at $3.47 per gallon under current market conditions would likely result in substantial losses for the participating stations, potentially costing them over a quarter-million dollars monthly. Tom Kloza, a petroleum analyst and chief energy adviser for Gulf Oil, described the business model as "jumping off a cliff," noting that to break even, stations would need to sell gas at least at $3.64 per gallon, factoring in wholesale costs, delivery, and taxes.
Trump's promotion of the network occurred as oil prices have been affected by geopolitical events. In the past month, Trump had criticized major oil companies on social media for not lowering gas prices in line with falling crude oil costs and directed the Department of Justice to investigate potential price gouging. The DOJ and FTC have since urged state attorneys general to investigate unjustified price increases.
Public records show limited information about the Freedom Fuel Network. While no business under that exact name is registered in Pennsylvania or New Jersey, a Delaware-based entity named "Freedom Fuel Network, LLC" filed for a trademark on July 1, the same day Trump first praised the network on social media. The registered agent for this Delaware entity is an office building used by many businesses. An attorney who submitted the trademark application declined to provide further details.
At least two major petroleum companies have distanced themselves from the operation. A Shell representative stated the company is not affiliated with the Freedom Fuel Network, and a Valero representative confirmed they no longer supply one of the participating stations and are removing its branding.
Customers at a Freedom Fuel Network station in Drescher, Pennsylvania, expressed mixed reactions, with many appreciating the lower prices but some questioning the source of the subsidies. "I want Americans to be asking, 'Where is that money coming from?'" local resident Tim Kerns told WPVI.
While the financial sustainability of the low prices remains uncertain, some industry observers note that gas stations can supplement income through convenience store sales. Additionally, high-volume stations, such as those operated by Costco or BJ's Wholesale Club, have recently been able to offer competitive pricing. Trump's endorsement of the Freedom Fuel Network comes as the administration continues to monitor petroleum markets for potential illegal conduct impacting gas prices.