Phillips 66 to Close Los Angeles Refinery by 2025

Phillips 66 announced it will close its Los Angeles-area refinery by the end of 2025, citing long-term market uncertainty, just days after California Governor Gavin Newsom signed new regulations aimed at controlling gas prices. The refinery, which accounts for approximately 8% of California's refining capacity and employs around 600 workers, will cease operations while the company explores future development options for the site. Although Phillips 66 stated the closure is not a direct response to the new law, industry groups have warned that such regulations could negatively impact supply. Newsom's legislation requires refiners to store more gasoline and improve supply chain transparency to combat soaring prices, which average around $4.66 per gallon. The company has committed to supporting its employees and the community during this transition and will maintain some operational assets in California, including a renewable energy facility. Critics claim that the new regulations could exacerbate supply issues, indicating a growing tension between the state government and the oil industry.