In the same week that gasoline topped the list of goods and services Americans say they struggle most to afford, a number of mysterious gas stations opened and began selling fuel at significantly reduced prices.
The Freedom Fuel gas stations — emblazoned with a stars and stripes paint job and surrounded by American flags — popped up in Philadelphia and New Jersey this week, charging $3.47 per gallon for gas. That came to 37 cents less than the national average as of July 9 — a welcome change for drivers desperate for price relief.
“What’s not to love?” one driver told the Philadelphia Inquirer, as another noted that “Gas should be cheaper.” In fact, Pennsylvania’s state average gas price hit $3.99 on July 9, while New Jersey’s was slightly cheaper at $3.89.
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The bigger question, however, revolves around the unknown identity of Freedom Fuel’s owner. The company didn’t reply to a request for comment, while The White House — which promoted the new gas stations — told Moneywise that “Freedom Fuel Network is a private company” and that the Trump administration “is not involved in the company, nor has the administration given the company any funding.”
Meanwhile, drivers in Philadelphia and New Jersey might want to fill up fast. Reports say at least one Freedom Fuel gas station already raised their price by 10 cents, citing the original rate as “a promotional offer,” while a prominent industry expert warns that such low prices aren’t sustainable.
Can $3.47 gas actually be profitable?
Freedom Fuel lists 25 locations across Philadelphia and New Jersey on its website, though it remains unclear if all of them are currently open and if more locations will pop up in other states.
Snopes confirmed that Freedom Fuel took over stations previously-owned by Shell, Gulf, Sunoco and other companies and that the business was registered in Delaware.
Despite the assertions that the Trump administration isn’t involved with the company, Trump himself touted the Freedom Fuel Network on Truth Social. And the White House took to X to promote the company with a video, adding that the stations are “lowering the price at the pump to $3.47 for our 47th president.”
“There is no other entity or person subsidizing the lower gasoline costs,” The White House added in its response to Moneywise. “They are simply reducing their margin to make prices at the pump more affordable for drivers in Philadelphia and New Jersey. This retailer is taking the lead, others should follow.”
That, however, brings up the question of how the retailer can keep their prices so low. GasBuddy’s head of petroleum analysis Patrick De Haan told the Inquirer that selling gas at that price is “not sustainable” because “generally, when losses happen, somebody’s got to pay for it.”
And in an email to Moneywise, Jeff Lenard, of the National Association of Convenience Stores, said that while he doesn’t have enough information to comment on specific operations at Freedom Fuel, “There are a lot of factors that go into wholesale prices that any individual station or company pays for gasoline.”
He noted that as of July 9, “a broad benchmark for the price of wholesale gasoline in the Northeast is about $3.10,” which “does not include state and federal taxes (the national average is between 50-60 cents per gallon), distribution costs and retail expenses — including credit card fees — to sell the gasoline.”
Those broad averages support De Haan’s point about the difficulty of sustaining such low sale prices, when wholesale costs can top $3.60 a gallon plus other expenses and costs.
And while $3.47 is a welcome relief after skyrocketing gas prices hit $4.55 a gallon in May, it still remains higher than the $3.16 per gallon average from a year ago and well above the $2 a gallon Trump himself promised on the 2024 campaign trail.
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Hacks for cutting gasoline costs you can start on today
The good news, for those looking to save money on gas, is that you don’t have to live near a Freedom Fuel location to do it. There are ways, experts suggest, to keep gasoline costs in check by adopting simple habits that add up over time.
AAA, for example, suggests looking into credit card and gas station rewards programs that may offer points, cash back or discounts. They added that warehouses including Costco also often offer discounts to members, while filling up on Mondays or Fridays — the cheapest days of the week for gas — can offer immediate relief.
Other common cost-saving tips include mapping out driving routes to cover the most stops in the shortest distance and keeping on top of scheduled vehicle maintenance to avoid issues that could lead to unnecessary fuel consumption.
The Department of Energy (DOE) , meanwhile, advises that aggressive driving, including speeding and hard braking, can cut gas mileage by up to 30% on the highway and 40% in stop-and-go traffic. They also recommend removing heavy items from your vehicle, as an extra 100 pounds “could reduce your fuel economy by around 1%.”
The DOE added that driving the speed limit, using cruise control on the highway and ensuring your tires are properly inflated can all help conserve fuel and, ultimately, pay off the next time you pull up to the pumps.
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Mike Crisolago is a Sr. Staff Reporter at Moneywise with nearly 20 years of experience working as a journalist, editor, content strategist and podcast host. He specializes in personal finance writing related to the 50-plus demographic and retirement, as well as politics and lifestyle content.
