Los Angeles is facing significant challenges, grappling with rising fuel prices and massive job losses.
The shutdown of the Phillips 66 refinery is now a reality, causing fuel costs to soar for drivers and impacting local employment as it squeezes already tenuous fuel supplies.
Regular gasoline prices have jumped above $8 per gallon, turning the daily commute into a hefty financial burden for many residents. Meanwhile, critical energy sectors are experiencing power outages, further complicating the situation.
The closure of the major Phillips 66 refinery, located between Carson and Wilmington, marks the end of its role as California’s primary fuel source. This happened in late 2025, leading to noticeable repercussions at gas stations throughout the area.
In its announcement, Phillips 66 pointed to reduced gasoline demand, increasing operational costs, and the hurdles presented by California’s stringent environmental regulations as reasons behind the closure.
“Given the uncertainty surrounding the future of the Los Angeles Refinery, influenced by market conditions, we are collaborating with a top land developer to consider future uses for this strategically located asset near the Port of Los Angeles,” stated Mark Lasher, Chairman and CEO of Phillips 66.
Nearly 600 employees and 300 contractors have been tied to this facility. The layoffs began late last year and will persist into 2026, leaving the site inactive.
“We recognize that this decision will have consequences for our workforce, contractors, and the wider community,” Lasher acknowledged.
The Los Angeles City Council responded unanimously, addressing job losses and the uncertain fate of the extensive site.
The city is reportedly working behind the scenes to help relocated workers with retraining and job placement initiatives. However, larger systemic issues are likely to take time to address.
Phillips 66 mentioned it would continue to supply fuel to California through imports and other methods, but the refinery’s closure would diminish a significant part of the state’s refining capabilities, further straining an already fragile system.
This development leaves California ever more reliant on imported fuel, increasing vulnerability whenever global markets are unstable.
Nonetheless, the company maintains its commitment.
“Phillips 66 is dedicated to meeting the needs of California and will continue to take necessary steps to satisfy commercial and customer demands,” Lasher concluded.
