PHILADELPHIA (KYW Newsradio) — A fuel wholesaler is suing members of the Freedom Fuel Network in federal court for nearly $4 million in unpaid deliveries, which is leading some to say its discounts are simply the result of unpaid bills.
The fuel retailer KRSM and owner Syed Kazmi, part of the Freedom Fuel Network, are accused of not paying the Mansfield Oil Company for 1.1 million gallons of gas delivered from May 21 through July 7.
The network launched in July with prices discounted as much as 50 cents — down to $3.47 as a nod to the 47th president.
“The ongoing federal lawsuit from Mansfield Oil exposes that magic trick, right?” asked Drexel University finance professor Dr. Eli Fich.
“The lawsuit is alleging that the cheap gas didn't come from a revolution in logistics or superior efficiency. It claims the distributor failed to pay a $4 million supply bill.”
Fich noted that margins for gas stations are thin. “They rolled out a price of $3.47 a gallon when regional averages in Pennsylvania and New Jersey were climbing past $4, right? So they were selling the fuel about 40 to 60 cents below the standard regional pricing,” he said.
“In a business where your profit is only about a dime, a 50-cent deficit isn't a discount model. It is an unsustainable money loser.”
An attorney for KRSM said fuel invoices from Mansfield were mispriced and called the issue an accounting dispute.
A Mansfield Oil spokesperson pushed back on that narrative in a statement, calling KSRM’s statements “factually inaccurate and highly misleading.”
“According to delivery records received from a carrier that lifted fuel off of Mansfield’s account at KRSM’s request, between May 21, 2026 and July 7, 2026, several hundred thousand gallons of Mansfield fuel were delivered by a carrier to at least ten locations listed on the Freedom Fuel Network’s website. Since the complaint was filed, the facts of which have not changed: no payment has been made to Mansfield by KRSM for the fuel delivered,” they said.
“This is not an accounting dispute. If it were, KRSM would have paid the undisputed amount. Rather, KRSM, which lifted 1.1 million gallons of gasoline from Mansfield’s account, has failed to pay anything for the fuel despite the fact that it resold all of that fuel.”
Fuel at Freedom Fuel retailers is listed at about $4 per gallon, currently about 30 cents below average for our region.
