Phillips 66 has announced its plans to close its Los Angeles-area refinery in the fourth quarter of 2025, affecting approximately 600 employees and 300 contractors. The decision is influenced by long-term sustainability uncertainties and recent regulatory changes initiated by California Governor Gavin Newsom to prevent gasoline price spikes. Phillips 66 will continue to meet California's fuel demand by sourcing gasoline from within and outside its refining network, including renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area. Despite the closure, Phillips 66 remains committed to California and is exploring future uses for the refinery site near the Port of Los Angeles with land development firms. The move is seen as a strategic response to market dynamics and regulatory pressures, aligning with state initiatives to transition from fossil fuels and address climate change challenges.