Federal Court Seeks $4 Million From Trump-Backed Detroit Gas Station Owner
Mansfield Oil alleges KRSM Inc. sold fuel without paying for deliveries, leaving Detroit drivers with cheap gas and a supplier with unpaid bills.
By Elena Greco ·
A federal court in Pennsylvania is seeking roughly $4 million from the owner of gas stations in Detroit that carry a presidential endorsement.
Mansfield Oil filed a 10-page lawsuit against KRSM Inc. and its owner on Monday. The complaint states that the company failed to pay for approximately $1.1 million in gallons of fuel. The supplier claims the unpaid debt totals about $4 million in value.
The lawsuit argues that KRSM used the unpaid inventory to offer lower prices at its two Detroit locations. The stations operate on McNichols Road and Third Avenue. The filing asserts that this pricing strategy generated publicity because the owner never settled the account with the supplier.
KRSM has previously denied the allegations. The company has not yet responded to the new federal complaint. The owner of the stations is associated with a fuel network that received endorsement from President Donald Trump.
Detroit drivers are currently paying $3.67 per gallon at these stations. The AAA reports the average price in the city is $4.14 per gallon. The national average sits at $4 per gallon. Local customers note the difference is substantial for those commuting to work or shopping for the holidays.
James David Brown, a Detroit resident, said he drives within a 15-minute radius of the station. He passes other local stations with higher prices and chooses the cheaper option. Shanelle Reid, another resident, described current prices as too high for the broader economy. She said food, clothing, and shipping costs have all risen.
Janet Lee, a Detroit driver, expressed hope that the owner will resolve the debt. She said she believes the fuel quality at the station is better than at other local locations. She wants the business to stay in the neighborhood despite the legal dispute.
