President Donald Trump’s gas price-cutting initiative is raising more questions than answers after estimates suggested the discounts could wipe out profits for participating stations.
As the White House touts its “Freedom Fuel Network” stations as providing relief to Americans struggling with high gas prices caused by Trump’s war with Iran, industry experts who spoke to ABC News described the business model as akin to “jumping off a cliff.”
In a Truth Social post last week, Trump announced that “a VERY smart Retailer” would cut gas prices at 25 stations across the Northeast and urged other businesses to follow suit.
“This Retailer is taking the lead, and others should follow. They are doing this because they love the U.S.A,” Trump wrote.
The stations lowered prices to $3.47 per gallon—a nod to Trump being the 47th president—but the Freedom Fuel Network has not explained how it plans to cover the cost as the president urges other retailers to follow.
ABC News found that no business registered under the name “Freedom Fuel Network” exists in Pennsylvania or New Jersey, where the stations are located. Instead, a Delaware-based entity called “Freedom Fuel Network, LLC” filed a trademark application on July 1—the same day Trump announced the initiative.
The five gas stations in New Jersey and 20 in Pennsylvania appear to be independently owned and operated. According to Google Maps, some have previously been associated with major fuel brands, and two companies—Shell and Valero—have distanced themselves from the Freedom Fuel Network.
The outlet also found that the price cuts could leave the 25 participating stations facing losses of more than $250,000 per month under current market conditions.
The Trump administration has maintained that it is “not involved in the company” and has provided no funding for the initiative, claiming that “there is no other entity or person subsidizing the lower gasoline costs.”
Still, the White House has continued to promote the initiative as gas prices become a growing political headache for Trump ahead of the upcoming midterm elections.
The 80-year-old president campaigned on delivering gas below $2 a gallon, but prices at the pump soared after his strikes on Iran more than four months ago, leaving voters increasingly unhappy with the reality.
The national average price for a gallon of gas reached as high as $4.56 in May before falling to around $3.88, according to AAA.
But prices could face renewed pressure after Trump said on Wednesday that a June deal with Iran was “over” following fresh strikes, sending gas prices higher again and leaving the outlook uncertain.
The Daily Beast has reached out to the White House and Freedom Fuel Network for comment.
