Freedom Fuel expands to 29 stations as discount gas prices narrow

Freedom Fuel Network has added four stations, bringing its total to 29 across Philadelphia and southern New Jersey, while continuing to sell gasoline below many nearby competitors. The company launched in early July at $3.47 a gallon, a price President Donald Trump said honored his status as the nation's 47th president, and at the time analysts said it was roughly 40 cents below market. FuelTrust, a fuel supply chain technology firm, estimated for The Washington Post that, at those volumes, the network may have been giving up as much as $24,000 a day in revenue, or as much as $360,000 over its first two weeks, versus nearby rivals. Prices later rose above $4 a gallon at many stations in late July, and the network's median price in the past week was $3.89, about 25 cents below nearby stations based on a Washington Post review of GasBuddy listings. Analysts say the pricing puzzle has become less acute as the gap has narrowed. Jonathan Arneault, FuelTrust's founder, said stations can "make a profit, barely" at current levels given crude and delivery costs, while finance professor Eliezer Fich said the prices now appear to be "converging back toward the ordinary market," which is more consistent with cheaper fuel supplies being exhausted. Experts said possible explanations include access to lower-cost fuel bought when wholesale gasoline was about $2.10 a gallon, rather than the $3.25 seen in late July, or discounts from a supplier or delivery service. Public records reviewed by The Post tie the company to Randy Brown and Yoni Gontownik, who incorporated Freedom Fuel in Delaware on June 25, and to station operators Shamikh and Syed Kazmi. Brown is a Baltimore Ravens special-teams coach and former mayor of Evesham, New Jersey. Gontownik previously worked for Mercuria, which said it is not involved. The Kazmis, who manage at least six Freedom Fuel stations according to records reviewed by The Post, have faced more than a dozen lawsuits alleging misconduct including fraud and unpaid debts. One Bustleton Avenue station managed by Syed Kazmi has an expired fuel dispensing license, failed an inspection during its renewal process and faces closure by Sept. 4, city officials said. The White House has promoted the chain while denying any financial stake, subsidy or partnership. White House spokeswoman Taylor Rogers said Freedom Fuel was "doing a good thing for drivers in Pennsylvania and New Jersey by lowering their gas prices," and a White House official said Trump, his family and his businesses have no financial stake in companies connected to the network and that "no other entity or person" is subsidizing the low pump prices. Industry analysts say the remaining question is how long Freedom Fuel can keep selling gasoline even at its current prices, though drivers continue to respond to some of the cheapest fuel in Philadelphia and southern New Jersey, still below Thursday's national average of $4.06 a gallon.

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