Trump promotes ‘Freedom Fuel’ stations that sell cheap gas. How they’re able to do so is unclear

By Chris Isidore, CNN

Bristol, Pennsylvania (CNN) — President Donald Trump is heralding a new chain of gas stations that are selling gas for $3.479 a gallon, well below both market prices and wholesale costs.

“This retailer is taking the lead, and others should follow,” he wrote in a Truth Social post last week, highlighting the July 3 opening of a network of 25 “Freedom Fuel” stations located mostly around Philadelphia and in southern New Jersey. “Gas prices at the pump are dropping …but not as fast as they should be.”

High gas prices have been a sore point for the Trump administration since the start of the war with Iran. The national AAA average was $3.85 per gallon as of Thursday and $3.99 in Pennsylvania, down from the peak but well above prices before the war.

But the bargain Trump is promoting is only available at two dozen stations out of the tens of thousands of gas stations of all kinds nationwide. CNN hasn’t been able to confirm all the Freedom Fuel stations are open.

And it’s unclear who is running the discount gas stations and for how long.

Freedom Fuel did not reply to requests for comment. The White House said that Freedom Fuel Network is a private company with no government support or subsidies.

“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 spokesperson told CNN. “They are simply reducing their margin to make prices at the pump more affordable for drivers in Philadelphia and New Jersey.”

CNN found an incorporation filing for Freedom Fuel Network in Delaware on June 23, but no owner was listed.

Station owners set their own fuel prices, and the overwhelming majority of gas stations in the country are small businesses that run on thin margins, not the major oil companies that often have their brands on the stations. Many make most of their money on the convenience store items sold inside, like snacks and drinks.

There is no way the stations can be profitable – or even sustainable – charging that much below cost, according to Jeff Lenard, spokesperson for the National Association of Convenience Stores, which represents stores that sell about 80% of the fuel sold nationwide.

“There’s no way those stations could operate the way a traditional retailer would, without at least breaking even on fuel,” said Lenard.

Most of the drivers pulling in to one of the stations in Bristol, Pennsylvania, on Wednesday evening told CNN they were unaware of the White House’s support for the company. They were just happy to find cheaper gas.

James Lymer said he heard about the cheaper gas via social media and made the trip specifically to fill up. He was buying nearly 16 gallons of gas for $55 for his Toyota 4Runner SUV, saving about $8 over the price he would normally pay.

“I love it, because I’m retired, and every little bit helps,” he said.

A competing independent gas station just down the road, Red Lion Fuel, was selling gas for $3.60 a gallon on Wednesday. Muhammad Irfan, who has owned the station since 2022, told CNN he was already selling about 500 gallons a day less than he usually does before the Freedom Fuel opened up shop.

He usually prices his gas more cheaply than nearby stations, including the former Valero station that is now Freedom Fuel. But he can’t hope to match Freedom Fuel’s prices.

“We cannot even compete,” he said. “We are hardly breaking [even] when we pay off things like credit card charges. There’s no way I can go down to $3.47 unless I’m losing money.”

Some major retailers, like Costco, can sell gas below broader market prices, but that’s because of the sheer volume of fuel the huge retailer is buying nationally. The Costco nearest to the Freedom Fuel in Bristol was also selling gas for $3.479 a gallon.

“When you buy fuel in that type of volume, you have a different price (for wholesale gas) than somebody that’s getting one or two tanker truck deliveries a week,” Lenard said.

Irfan said he doesn’t know who, if anyone, is giving financial support or rebates to Freedom Fuel to allow it to keep prices so low. If they are getting financial support from the government or supporters of the Trump administration, “it’s very unfair.”

“We keep very fair prices so everybody can afford it,” he said. “Because of our reputation, we always get business.”

Another driver filling up at Freedom Fuel in Bristol, Bud Shank, said he is not a fan of the Trump administration, and lower fuel prices aren’t changing his view of the president.

“I still wouldn’t be a supporter (of Trump),” he said, filling up his tank for $51. “I’m here for the low cost of fuel. I drive several vehicles. One’s an RV that gets 8 miles to the gallon.”

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