cross-posted from: https://lemmy.world/post/49238353

“When losses happen, somebody’s got to pay for it.”

Called Freedom Fuel Network, the enterprise encompasses dozens of gas stations throughout Pennsylvania and New Jersey, USA Today reported, although it isn’t exactly clear which locations are open for business. Plastered in American flag decals and “Freedom Fuel” branding, the gas stations seem to be selling unleaded gasoline for the fixed-price of $3.47 per gallon, about 32 cents cheaper than the current average price in the US.

According to GasBuddy, nearby prices range from $3.85 to as much as $4.49 — no doubt reflecting the slower drip of oil from the president’s costly war on Iran, which burst back into active fighting this week.

As head of petroleum analysis at GasBuddy Patrick De Haan told the Philadelphia Inquirer, the current price of crude oil means there’s no way Freedom Fuel’s $3.47 price point can turn a profit.

“Stations selling at this price, it’s not sustainable,” De Haan explained. “Generally, when losses happen, somebody’s got to pay for it.”

De Haan raises an obvious question: who is paying for it? If the stations are losing money on every gallon, somebody has to make up the difference somewhere — whether out of Trump’s pocket, that of a friendly donor, or the taxpayer’s. And if it’s a private company taking the hit, how long until they stop subsidizing Pennsylvania drivers?

Already, the stunt seems to be distorting local markets. As of Wednesday, a nearby Sam’s Club in Dresher dropped its price to match the $3.47 figure — surely good news for anybody buying gas in South Eastern Pennsylvania, but as always, the devil is in the details.

  • ryannathans@aussie.zone
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    18 hours ago

    Is it possible that the wholesale cost of fuel is below 3.47 and the others just have higher profit margins?

    Edit: Once taxes and fees are incorporated you end up at approximately $3.6-3.7 for Pennsylvania and New Jersey. The small difference is probably made up for with advertising, other purchases or funding for PR campaign. It’s about $2.40 per car tank

    3.47 was profitable just a week or two ago when wholesale prices were 2.59

    https://tradingeconomics.com/commodity/gasoline