Phillips 66 will close its Los Angeles oil refinery in late 2025, citing “long-term uncertainty.” The facility supplied about 8% of California’s gasoline. Phillips 66 said it “will work with the state of California to supply fuel markets and meet ongoing consumer demand.”
According to a statement from the company, “As the California Energy Commission’s analysis has indicated, expanding supply capabilities will be critical. Phillips 66 supports these efforts and will work with California to maintain current levels and potentially increase supplies to meet consumer needs. The company will supply gasoline from sources inside and outside its refining network as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area.”
The moves came two days after California Gov. Gavin Newsom signed a law “clearing the way for new regulations on the state’s refiners,” Politico reported.
Phillips 66 spokesperson Al Ortiz said that the refinery closing was not in response to Newsom signing the law, and that the company is not exiting California—he noted the company’s San Francisco refinery and other facilities remain open.
“With the long-term sustainability of our Los Angeles refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” Mark Lashier, the company’s chairman and CEO, said in the statement.
On Monday, October 14, Newsom signed legislation that gives the state the authority to require refiners to store more gas and share its resupply and maintenance plans with the state. The legislation aims to prevent gasoline price spikes.
Alessandra Magnasco, governmental affairs and regulatory director of the California Fuels and Convenience Alliance (CFCA), said, “We continually warned the Legislature and Administration about how ABX2-1 would negatively impact supply. … There is no mystery to our high gas prices—exploding overhead costs to run our stations, costly environmental regulations, and now, with even less supply in the market, every Californian will end up paying higher prices in this government-created energy crisis.”
Magnasco added, “While we understand the need for sustainable progress, we urge policymakers to consider the immediate impacts on consumers, workers and the stability of California’s fuel supply.”
According to Politico, “California’s refinery market is dominated by five oil majors that produce nearly all of its special blend of low-polluting gas at just nine refineries. The California Energy Commission has found that the remaining refinery capacity only slightly exceeds the state’s fuel consumption.”