Phillips 66 is shutting down its Los Angeles refinery next year, just days after California passed a law forcing refineries to stockpile fuel to prevent price spikes. Experts warn this will likely increase prices instead. Despite Phillips 66 claiming the closure isn’t related, analysts believe it’s a response to California’s increasingly hostile regulations towards the oil industry.
Governor Newsom argues the law will save consumers money, but California already has the highest gas prices in the country, thanks in part to strict fuel regulations. Experts also highlight how California’s dependency on foreign oil creates national security risks. The closure is part of a trend, with other oil companies exiting the state, frustrated by punitive laws that treat the industry as an enemy.
Phillips 66 will continue operating its renewable fuels plant, but the refinery shutdown will cost hundreds of jobs, signaling bigger challenges ahead for California’s energy sector.
