Mansfield Oil Company of Gainesville has filed a lawsuit against KRSM and its president, Syed Kazmi, alleging the company stole nearly $4m worth of fuel. The suit claims KRSM picked up approximately 1.1m gallons of fuel from 21 May to 7 July, valued at over $3,998,000, and failed to pay for it. According to the lawsuit, KRSM sold some of that fuel to stations within the Freedom Fuel Network, a discount gas chain that received public praise from former President Donald Trump.
Background of the dispute
The Freedom Fuel Network, which operates 29 locations across Pennsylvania and New Jersey, offered gas at $3.47 per gallon in July. This price came during a period of higher oil prices linked to the conflict with Iran and increased summer travel demand. Trump promoted the network in a Truth Social post days before the Fourth of July weekend, stating, "I am pleased to announce that a VERY SMART Retailer, located throughout the Northeast, is stepping up." He added, "America has never been stronger than it is now, and Gas Prices will soon be back to the Record Low Prices Americans enjoyed at the pump before our very successful 'excursion' in Iran."
The lawsuit, filed on 19 August, alleges that "KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid Plaintiff for such fuel." This suggests that the low prices were enabled by the alleged non-payment.
Responses and legal claims
A White House official stated, "The Administration has had zero contact or dealings with the defendant: KRSM Inc or Sayed Kazmi." A source familiar with the Freedom Fuel business added, "KRSM Inc and Sayed Kazmi are not associated with the Freedom Fuel Network in any capacity." However, Mauro Tucci, a lawyer representing Kazmi, said, "KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil."
According to the lawsuit, a data error prevented Mansfield from invoicing KRSM until early July. Mansfield then sent revised invoices and notified KRSM that it would begin withdrawing payment from KRSM's bank account on 27 July. The agreement required payment within 10 days of receiving an invoice. Mansfield attempted to collect on 27 and 28 July, but KRSM's bank refused the drafts.
Impact and ongoing situation
During phone calls between late July and early August, Kazmi assured Mansfield that he would pay for the fuel. However, the suit states, "As of August 17, 2026, Mansfield has not received any payment for the referenced 150 loads of fuel that KRSM purchased from Mansfield at the Twin Oaks Terminal." Gas prices in August have continued to rise as US-Iran peace talks stall. The AAA reported on Thursday, "For the first time ever, the national average in August has been above $4 per gallon every day," with the national average at $4.08 on Sunday.
