Trump promotes low-price gas stations amid doubts over profitability
President Donald Trump highlighted a network of stations selling gasoline at $3.47 per gallon, but analysts say the price likely forces participating stations to sell at a loss.
President Donald Trump praised a group of 25 gas stations in Pennsylvania and New Jersey that announced a price of $3.47 per gallon, about 50 cents below the regional average. The stations, listed under the Freedom Fuel Network, have not disclosed a detailed business plan, and public records show limited information about the entity.
Industry analysts estimate that, given current wholesale costs and taxes, the $3.47 price would leave stations with a loss of at least 17 cents per gallon, potentially costing the network more than $250,000 each month. "The gross profit margin in the last few years has been just under 40 cents a gallon," said Tom Kloza, a petroleum analyst with Gulf Oil. "Selling at $3.47 would therefore be unsustainable without additional revenue sources," he added.
A White House spokesperson told reporters that the Freedom Fuel Network is a private company not receiving any government funding or subsidies. "The Administration is not involved in the company, nor has the Administration given the company any funding," the official said.
Two major fuel brands, Shell and Valero, confirmed they are not affiliated with the network and are disengaging from the participating locations. The trademark for Freedom Fuel Network, LLC was filed in Delaware on July 1, the same day Trump posted about the initiative on social media.
The Department of Justice, citing Trump’s request, has warned state attorneys general to monitor gasoline pricing for possible anti-competitive conduct. Meanwhile, some consumers expressed skepticism about how the discounted price is being financed, questioning whether the promotion is a temporary marketing tactic.
Analysts noted that while gas stations have improved profit margins over the past decade, the current wholesale price of regular gasoline—about $2.89 per gallon on July 3—combined with state and federal taxes, requires a pump price of at least $3.64 to break even. The Freedom Fuel Network’s $3.47 price therefore appears to be below cost under prevailing market conditions.