Phillips 66, a major U.S. refiner, announced plans to shut down its large refinery in the Los Angeles area by the end of next year. This decision is expected to affect California's fuel supply, potentially leading to higher fuel prices in the state. The company's CEO, Mark Lashier, cited "market dynamics" as the reason for the closure.
A spokesperson for Phillips 66 mentioned that the Los Angeles refinery has been less profitable compared to the company's other facilities. California, the most populous state in the U.S., consistently has some of the highest average gasoline prices in the country, creating ongoing tensions between the state and oil companies.
The closure of this Phillips 66 refinery will create a supply gap for automotive fuel in California. Since 2020, the state has already seen the shutdown of two other refineries, including another Phillips 66 facility. The Los Angeles refinery currently produces 85,000 barrels of gasoline and 65,000 barrels of diesel and jet fuel daily. It employs about 600 workers and 300 contractors.
Mike Smith, Chairman of the Oil Bargaining Project for the United Steelworkers, described the planned closure as a "devastating loss" for workers and the surrounding community. The union plans to negotiate for severance and benefits for affected employees.
Phillips 66, based in Houston, is in talks with real estate developers regarding the future use of the refinery's 659-acre site, which is currently connected by two pipelines.
