Phillips 66 has announced plans to close its refinery located near Los Angeles by the end of next year, citing market concerns. This decision comes shortly after California Governor Gavin Newsom signed a new law empowering state energy regulators to mandate fuel inventory levels for refiners and oversee scheduled maintenance at their facilities.
In August, Governor Newsom emphasized the need for accountability among oil refiners, stating, “Price spikes at the pump are profit spikes for Big Oil.” He argued that refiners should be required to proactively manage their fuel supplies to stabilize prices for consumers. Newsom’s proposed legislation aims to ensure that refiners maintain a gas reserve, potentially saving Californians money at the pump.
This legislative push was prompted by findings from the California Energy Commission, which revealed that refiners in the state held only 15 days’ worth of gasoline inventory for 63 days last year. The governor’s office indicated that this limited inventory contributed to soaring fuel prices.
The Phillips 66 facility in the Los Angeles area currently produces 85,000 barrels of gasoline and 65,000 barrels of diesel fuel per day. The closure will significantly reduce the fuel supply available to California drivers, who are already grappling with the highest gasoline prices in the nation.
Governor Newsom and his administration have criticized oil companies like Phillips 66, accusing them of manipulating supply to drive up prices. Conversely, industry representatives have pointed out that California’s high gasoline prices are partially due to elevated excise taxes and carbon fees imposed on fuel sales.
The impending refinery shutdown is expected to result in the loss of approximately 600 jobs at Phillips 66, along with an additional 300 contractor positions.
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