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Lawsuit Claims Discounted 'Freedom Fuel' Gas Was Sold Without Paying Supplier
Energy Minerals · Oil Refining/Marketing · cnbc · 2026-08-30
A federal lawsuit alleges that KRSM obtained millions of dollars in fuel from Mansfield Oil without payment, potentially subsidizing discounted gas prices.
What Happened
Legal Allegations and Unpaid Invoices: Mansfield Oil has initiated a federal lawsuit against businessman Syed Kazmi and his company, KRSM, for allegedly failing to pay for over 1.1 million gallons of fuel. The supplier claims that an invoice totaling approximately $4 million remains outstanding following deliveries made between May and July 2026.
Connection to Discounted Pricing: The litigation suggests that the fuel obtained without payment may have been used to facilitate deep discounts at Freedom Fuel Network stations. These locations gained national attention in July for selling gas at $3.47 per gallon, a move publicly praised by President Donald Trump as a sign of economic relief.
Defense and Counterclaims: Legal representatives for KRSM have dismissed the allegations, characterizing the situation as a simple accounting disagreement regarding invoice pricing errors. The company maintains that the dispute is purely commercial and has declined to provide further details while the litigation is pending in court.
Judicial Intervention and Impact: A federal judge has issued a preliminary injunction requiring the defendants to maintain a minimum bank account balance of $2.75 million as the case proceeds. While the lawsuit does not directly accuse the Freedom Fuel Network of wrongdoing, the investigation highlights the complex supply chain dynamics behind the highly publicized fuel price promotion.