President Donald Trump is promoting a new chain of gas stations called ‘Freedom Fuel’ that are selling gas for $3.479 a gallon, well below both market prices and wholesale costs. The stations, located mostly around Philadelphia and in southern New Jersey, have sparked questions about how they can afford to sell gas at such low prices.

Unclear Business Model

The business model behind Freedom Fuel is unclear, with the company not responding to requests for comment. The White House has stated that the administration is not involved in the company and has not provided any funding or subsidies. However, it is unclear who is running the discount gas stations and how they can sustain such low prices.

According to Jeff Lenard, spokesperson for the National Association of Convenience Stores, it is unlikely that the stations can operate profitably at such low prices. ‘There’s no way those stations could operate the way a traditional retailer would, without at least breaking even on fuel,’ he said.

Impact on Local Businesses

The low prices at Freedom Fuel have already started to impact local businesses, with one competing independent gas station owner, Muhammad Irfan, stating that he cannot compete with the low 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.’

Original reporting: El Paso News (HLL/CB) — read the source article.