The company that supplied fuel to the discount gas stations praised by Donald Trump is being sued for allegedly stealing nearly $4m worth of gas.

Mansfield Oil Company of Gainesville sued KRSM and its president, Syed Kazmi, for allegedly picking up about 1.1m gallons of fuel from 21 May to 7 July, worth more than $3,998,000, and not paying for it.

KRSM sold some of the fuel to stations that are part of the Freedom Fuel Network, according to the suit.

The dispute comes after the Trump administration promoted the Freedom Fuel Network, which offered gas for the low price of $3.47 per gallon in July, when drivers were facing higher oil prices amid the war with Iran and the busy summer travel season was driving up demand.

“I am pleased to announce that a VERY smart Retailer, located throughout the Northeast, is stepping up,” the US president said in a Truth Social post just a few days before the Fourth of July weekend, pointing to the Freedom Fuel Network. “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: “KRSM was able to sell such fuel for such low prices and garner such publicity because it never paid Plaintiff for such fuel.”

Freedom Fuel Network is a private gas chain with 29 locations in Pennsylvania and New Jersey.

A White House official said: “The Administration has had zero contact or dealings with the defendant: KRSM Inc or Sayed Kazmi.” A source familiar with the Freedom Fuel business said: “KRSM Inc and Sayed Kazmi are not associated with the Freedom Fuel Network in any capacity.”

“KRSM disputes the allegations in this case, which is an accounting dispute over fuel invoices mis-priced by Mansfield Oil,” said Mauro Tucci, a lawyer representing Kazmi.

Mansfield said in the lawsuit that a data error prevented it from receiving the information needed to invoice KRSM until early July. Mansfield later sent KRSM revised invoices and told the company it would begin withdrawing payment from its bank account on 27 July.

Under their agreement, KRSM was required to pay within 10 days of receiving an invoice. Mansfield attempted to collect the payment on 27 and 28 July, but KRSM’s bank refused the drafts, according to the lawsuit.

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During phone calls between late July and early August, Kazmi told Mansfield that he would pay for the fuel.

“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,” reads the suit.

Gas prices in August have continued to climb as peace talks between the US and Iran have stalled.

“For the first time ever, the national average in August has been above $4 per gallon every day,” said the AAA on Thursday. The national average for a gallon of gas stood at $4.08 on Sunday.