Phillips 66 announced on Wednesday it is closing its Wilmington-Carson complex at the end of 2025.
The refinery complex, which has been around for more than 100 years, produces about eight percent of gasoline supplies for the state.
“With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” Mark Lashier, chairman and CEO of the refinery complex, said. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”
Lashier added the refinery complex would help its employees and contractors through the transition.
This comes a couple of days after Gov. Gavin Newsom signed a new law that is aimed at preventing significant increases in gas prices by having refineries keep more gasoline supplies on hand in the event a refinery goes down for maintenance.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts
Phil Flynn, an oil industry analyst, told KNX News’ Jon Baird, there will most likely be gas price spikes when the refinery complex closes.
“I think every Californian knows that when one refinery goes down in California, because you see an immediate major price spike at the pump,” he said. “So, next time a refinery goes down in California without those Phillips refinery, that price spike that you get is going to be a lot higher.”
He added that the prices would increase eight percent over time.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok