Blue State Blues: California Faces High Pump Prices as Phillips 66 Shuts L.A. Refinery
29th August 2025
Phillips 66 will begin shutting down its 139,000 bpd Los Angeles-area refinery as soon as next week, sources told Reuters, moving forward on a closure plan announced last year. Units at the plant will idle in phases through Q4 2025, with the facility permanently offline by year-end.
The decision isn’t a surprise—Phillips 66 said in October it would exit the site, citing “market dynamics.” But it comes with fallout: about 600 employees and 300 contractors will lose their jobs by December, with only a handful reassigned to the company’s marine terminal. The company insists it will support workers through the transition, though local officials remain worried about the economic hit.
California, meanwhile, is staring at a bigger problem. Between Phillips 66’s LA facility and Valero’s Benicia refinery, scheduled to close in 2026, the state is set to lose roughly 17% of its refining capacity. That’s a dangerous haircut in a state already paying the nation’s highest pump prices. Analysts warn that by late 2026, California gasoline could top $8 a gallon if supply disruptions collide with fewer in-state refineries.