South Jersey Freedom Fuel stations racked up big fines before being promoted by White House

Six South Jersey gas stations that the White House promoted in July, touting below-market fuel prices, have racked up environmental violations with the state dating back to 2023.

The New Jersey Department of Environmental Protection issued close to $430,000 in fines in May to operators who run 17 gas stations, including the six Freedom Fuel locations, for the violations accrued over the years, according to an administrative order first reported by Politico and obtained by The Inquirer. The fines were issued before these stations rebranded to Freedom Fuel.

The Freedom Fuel stations, which made their debut this summer, accrued more than $202,000 in fines, according to department records. All 17 stations are owned by asset manager Blue Owl Capital and operated by Cherry Hill developer Shamikh Kazmi and his brother Syed Kazmi.

Blue Owl and the Kazmi brothers could not be reached for comment.

The owner-operators have requested a hearing, according to DEP spokesperson Larry Hajna, but no date had been set as of Wednesday.

The violations include failing to properly register underground storage tanks, failing to provide overfill prevention for some tanks, failing to cut and cap lines that lead to out-of-service tank systems, and violating delivery bans.

A Freedom Fuel location at 6801 Tilton Rd. in Egg Harbor was issued a fine of $50,000, the maximum penalty for the violation. The location received four deliveries in November 2023, despite having been banned from doing so because it did not properly register its storage tank.

In its justification for the fine, the department described the operator’s actions as a “deliberate and knowing act,” noting it was a major violation.

The Kazmi brothers have been embroiled in at least two lawsuits related to previous gas station ventures, including a 2021 trademark dispute with BP American Inc. and BP Products North America Inc. Additionally, Petroleum Marketing Group Inc., a fuel distribution company, accused the brothers of stealing thousands of gallons of gas from the company.

The Freedom Fuel Network expanded to 29 locations earlier this month, but one Philly station was nearly shut down by the city.

The network’s Bustleton Avenue station — also linked to the Kazmi brothers — failed a license renewal inspection at the end of July that could have forced its closure. But the owners remedied the issue and can continue to operate the station, according to a city spokesperson.

More than two months after having been loudly promoted by the White House and President Donald Trump, Freedom Fuel’s owners have remained silent about their discount gas operation.

Baltimore Ravens assistant coach Randy Brown and former commodities trader Yoni Gontownik signed the company’s certificate of formation in Delaware and have not spoken publicly about the highly touted enterprise.

Freedom Fuel launched with prices 40 to 50 cents a gallon cheaper than nearby stations, frustrating competitors and confusing experts who follow the notoriously low-margin business.

“With every new site, we’re driving down gas prices at the pump for more communities,” reads a message on the network’s website.

In recent weeks, prices across Freedom Fuel locations have risen closer to other discount locations.

Take the location on Dreshertown Road in Upper Dublin Township, which was promoted in a video shared by the White House. When it launched at the beginning of July, the station sold gas for $3.47 a gallon — a nod to Trump being the 47th president. But as of Tuesday, the station was selling gas for $3.89 a gallon, about a dime cheaper than a nearby Citgo station and slightly more than Sam’s Club, according to gas-tracking website GasBuddy.

The average cost of a gallon of gas in Philadelphia on Tuesday was $4.15, according to AAA. That was up more than 28% from this time last year, when the cost averaged $3.23.