NOW: Oil Refinery Shutdown — $8 Gas on the Horizon?

HAPPENING NOW: California’s largest refinery is shutting down this year, threatening to send gas prices soaring and leaving hundreds of working families behind—all thanks to years of radical climate mandates that have crippled American energy independence.

Story Snapshot

Phillips 66 will shutter its Los Angeles-area refinery by year-end 2025, eliminating 17% of California’s refining capacity.
Closure triggered by aggressive state decarbonization policies, risking massive job losses and higher fuel prices.
No clear transition plan for the 900 workers or the local communities affected by layoffs and economic disruption.
Experts warn that California could face $8-per-gallon gasoline and increased dependence on foreign fuel imports.

Phillips 66 Refinery Shuttering: Another Blow from California’s Green Agenda

Phillips 66, one of the last major oil refiners in Southern California, began winding down its 139,000-barrel-per-day Los Angeles-area facility in August, with full closure scheduled for late 2025.

This is not just another plant closure—this is a direct result of Sacramento’s relentless push for decarbonization, forcing companies out with suffocating regulations and costs. For working families, the fallout is immediate: 900 high-paying jobs, many of which are unionized, will disappear, and local businesses dependent on the refinery will also take a hit.

This facility has supplied 13% of the region’s gasoline and nearly a third of its diesel, fueling everything from delivery trucks to local police vehicles. With California’s fuel market isolated by limited pipelines, shutting down this refinery is a dangerous experiment in energy policy. The state’s leaders claim it’s about “transitioning” to renewables, but the reality is higher prices at the pump, supply shortages, and growing reliance on foreign imports. There is no clear plan for retraining or supporting the hundreds of families about to lose their livelihoods, and the state’s response has been little more than political slogans.

Economic Impact: Families, Businesses, and Consumers Left Behind

The economic consequences of this closure are staggering. Nearly 900 skilled jobs—comprising 600 employees and 300 contractors—will be eliminated by December, resulting in a significant reduction in household incomes and a contraction of the local tax base. Small businesses, from suppliers to restaurants, will feel the effects as disposable income declines and spending slows.

Fuel consumers across the state are bracing for price spikes—estimates suggest gasoline could jump by as much as $1.47 per gallon, with experts warning of even higher surges if supply disruptions occur. This poses a direct threat to middle-class Californians, who are already struggling with inflation and the nation’s highest cost of living.

California’s aggressive climate agenda has already forced several refineries to close or convert to renewable fuels, further tightening supply. The state’s energy isolation means there’s no quick fix—no pipeline from Texas, no easy import options. Instead, more fuel will be shipped in by tanker, raising costs and emissions at crowded ports. Even environmentalists acknowledge that scaling renewables quickly enough to fill the gap is a monumental challenge, as evidenced by Phillips 66’s own $116 million quarterly loss in renewable fuels last year. Despite the rhetoric, workers and communities are left with uncertainty, not opportunity.

Expert Warnings: Price Shocks and National Security Risks

Industry analysts are sounding the alarm, calling this shutdown a “dangerous haircut” to California’s energy infrastructure. If another refinery goes offline or imports are delayed, gasoline could hit $8 per gallon—a nightmare scenario for commuters, truckers, and businesses statewide.

As California removes 17% of its refining capacity, it becomes even more dependent on unstable global markets and foreign producers, undermining both economic and national security. The lack of a real transition plan exposes a fundamental flaw in the state’s approach: sacrificing jobs and energy security for political headlines, while leaving working families to bear the brunt of the cost.

Local officials and union leaders have pleaded for a coordinated strategy to help workers transition, but no detailed plan has been announced so far. Without immediate action, the fallout will ripple far beyond refinery gates, impacting schools, emergency services, and the broader community.

This is not just a California problem—when one state’s policies drive up fuel prices, the effects are felt nationwide. The Phillips 66 closure is a cautionary tale of what happens when ideology trumps common sense, and hardworking Americans pay the price.