Phillips 66 will close Los Angeles oil refinery next year amid regulatory changes

Phillips 66 announced plans to shutter its Los Angeles refinery by late 2025, just days after California passed new laws aimed at curbing gasoline price spikes and tightening refinery oversight.

Wes Venteicher reports for POLITICO.

In short:

Phillips 66 will close its Los Angeles refinery, which supplies 8% of California's gasoline, citing market uncertainties.
The closure follows new legislation signed by Gov. Gavin Newsom that increases state regulation over fuel storage and refinery operations.
Phillips 66 says it will continue to supply fuel through other means, including renewable energy sources from its San Francisco refinery.

Key quote:

“With the long-term sustainability of our Los Angeles refinery uncertain... we are working with leading land development firms to evaluate the future use of our unique properties near the Port of Los Angeles.”

— Mark Lashier, chairman and CEO of Phillips 66

Why this matters:

California's efforts to transition from fossil fuels face challenges balancing energy supply and environmental goals. The refinery's closure could strain gasoline production, leading to higher prices or supply disruptions in a state already battling high fuel costs.

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