On Wednesday, Phillips 66 announced its decision to halt operations at its Los Angeles refinery by the conclusion of 2025. Chief Executive Mark Lashier attributed this move to uncertainties arising from “market dynamics.” This announcement follows California Governor Gavin Newsom’s recent signing of legislation mandating refineries to uphold minimum stockpiles, a measure intended to mitigate price fluctuations, although the industry argues it will instead increase operational costs.

The company reports that the refinery, which consists of two facilities situated in Carson and Wilmington and linked by a five-mile pipeline, can produce up to 85,000 barrels per day (bpd) of gasoline and 65,000 bpd of distillates. In addition, the Los Angeles refinery also produces fuel-grade petroleum coke.