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. The stations, called ‘Freedom Fuel,’ are located mostly around Philadelphia and in southern New Jersey.
Low Gas Prices
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.
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.
Unclear Funding
It’s unclear who is running the discount gas stations, which sell gas below both market prices and wholesale costs, and for how long. Freedom Fuel did not reply to requests for comment. The White House said the Freedom Fuel Network is a private company with no government support or subsidies.
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, however, according to Jeff Lenard, spokesperson for the National Association of Convenience Stores, which represents stores that sell about 80% of the fuel sold nationwide.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
