Photo credit: Phillips 66CALIFORNIA – Phillips 66 announced, October 16, that they were ceasing operation of their Los Angeles-area refinery in the fourth quarter of 2025, affecting approximately 600 employees and 300 contractors.
“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,” said Phillips 66 chairman and CEO Phillip Lashier.
Phillips 66 supplies fuel to gas stations in California, primarily under the 76 brand, alongside its Phillips 66 and Conoco brands.
They said they will continue to work with the state to supply fuel markets and meet ongoing consumer demand.
“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,” said the company in a statement.
Phillips 66 has engaged two real estate development firms to evaluate the future use of the 650-acre sites in Wilmington and Carson.
The company says they understand this decision has an impact on employees, contractors and the broader community.
“We will work to help and support them through this transition,” said Lashier.
Minimum inventory of fuel mandate
The announcement comes days after Governor Gavin Newsom signed legislation he says will help prevent gas price spikes and save consumers money at the pump.
ABX2-1 allows the state to require oil refiners to maintain a minimum inventory of fuel to avoid supply shortages that he says create higher gasoline prices for consumers and higher profits for the industry.
“Now, the state has the tools to make sure they backfill supplies and plan ahead for maintenance so there aren’t shortages that drive up prices,” said Newsom.
Phillips 66 says they support the California Energy Commission’s (CEC) analysis on expanding supply capabilities. They said they will work with California to maintain current levels and potentially increase supplies to meet consumer needs.
Chevron says CA market interference has resulted in highest U.S. gas prices
Chevron recently voiced their concerns about the new mandate in a letter to California Senate and Assembly members.
“Across the three dozen states in which we work, the California government remains unique in its focus on marketplace interference with negative effects on consumers resulting in the highest U.S. gasoline prices,” said Chevron president Andy Walz.
He goes on to say that California has investigated the industry numerous times for price gouging and come up with no evidence or charges.
“We contend that enforcing a mandatory minimum inventory requirement will likely result in two negative outcomes: an increased frequency and duration of supply shortages, and a permanent rise in gasoline prices for consumers,” said Walz.
