Mansfield Oil Sues Fellow Distributor KRSM for Nearly $4M in Unpaid Freedom Fuel Gas - Modern Distribution Management

Mansfield Oil Sues Fellow Distributor KRSM for Nearly $4M in Unpaid Freedom Fuel Gas

Mansfield Oil Company alleges that distributor KRSM failed to pay for nearly $4 million worth of gasoline, hundreds of thousands of gallons of which were delivered to stations participating in the recently launched Freedom Fuel Network.
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Fuel distributor Mansfield Oil Company is suing KRSM Inc. and its president, Syed Kazmi, alleging the company failed to pay for nearly 1.1 million gallons of gasoline worth approximately $4 million.

Gainesville, GA-based Mansfield filed the lawsuit Aug. 19 in the U.S. District Court for the Eastern District of Pennsylvania. The company alleges that KRSM obtained approximately 150 loads of fuel from Mansfield’s account at the Twin Oaks terminal in Pennsylvania between May 21 and July 7, totaling 1.12 million gallons valued at nearly $4 million.

According to national reports, Mansfield said carrier records show several hundred thousand gallons of that fuel were delivered to at least 10 gas stations participating in the Freedom Fuel Network, a recently formed collection of stations in Pennsylvania and New Jersey. Mansfield alleges KRSM resold the fuel without paying Mansfield.

KRSM disputes the allegations. Kazmi said in an Aug. 25 court declaration that he did not agree with the amounts Mansfield said were owed. KRSM has argued that the dispute centers on Mansfield’s pricing and invoices. Mansfield acknowledged that a data-receiving error delayed its invoices until early July and said it subsequently revised them to address what it characterized as minor pricing discrepancies.

On Aug. 28, U.S. District Judge Gerald Austin McHugh ordered KRSM and Kazmi to maintain at least $2.75 million in a bank account while the litigation proceeds. Mansfield is seeking at least $3.998 million plus interest, costs and other damages.

Freedom Fuel Background

Freedom Fuel emerged in the Philadelphia region in early July after President Donald Trump publicly urged gasoline retailers to lower pump prices. Trump promoted the new network July 1, and the White House highlighted its launch days later. The network initially offered regular gasoline for $3.47 per gallon — a reference to Trump serving as the 47th president — at 25 stations in Pennsylvania and New Jersey. The price was roughly 40 cents per gallon below prevailing market prices at the time.

The Freedom Fuel Network was incorporated in Delaware in late June and has described itself as a privately owned company that lowered prices in response to Trump’s call for cheaper gasoline. National reports have said the Trump administration does not own, operate or subsidize the network. Freedom Fuel subsequently expanded to 29 locations, while its prices moved closer to broader market levels.

Founded in 1957, Mansfield Energy is a family-owned fuel supply and logistics provider that operates throughout the U.S. and Canada. The company says it delivers more than 3 billion gallons of fuel and complementary products annually to more than 8,000 customers.

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