Governor of California PANICS After Phillips 66 Gas Refinery Begins Shutting Down

California faces a potential fuel crisis as Phillips 66 officially begins shutting down its large Los Angeles-area refinery. The move has forced Governor Gavin Newsom and state officials to act quickly to mitigate the impact on fuel supply and gas prices. According to Phillips 66, the refinery will complete its shutdown by the end of 2025. While the closure is part of the company’s broader asset restructuring and real estate redevelopment plan, it also means the state will lose a significant portion of its domestic refining capacity.

The announcement immediately raised concerns about fuel availability. Governor Newsom directed state agencies to work closely with remaining refineries to ensure a stable gasoline supply and prevent dramatic price spikes for consumers. Combined with similar closures planned at other refineries, experts warn that California could face severe fuel shortages, particularly given the state’s high gasoline demand.

Energy analysts predict that losing the Phillips 66 refinery could push California gas prices above $6 per gallon, potentially nearing $8 if market factors and transportation costs align unfavorably. Beyond pricing concerns, the closure will directly affect the workforce: roughly 600 full-time refinery employees and an additional 300 contractors may lose their jobs once operations cease completely.

The shutdown also highlights the state’s growing reliance on imported fuel. As domestic refining capacity declines, California may need to import more gasoline from other states or countries, increasing the risk of supply disruptions. Critics argue that the state’s aggressive shift toward clean energy policies and strict environmental regulations has contributed to the decline of its refining sector, making closures like Phillips 66’s an almost inevitable outcome.

Governor Newsom and state agencies now face the urgent challenge of balancing long-term environmental goals with immediate energy needs. They must stabilize fuel supplies, prevent steep price hikes, and protect jobs, all while maintaining the state’s climate commitments. The refinery closure is therefore not just an economic or technical event; it is a complex political and social issue that requires swift and coordinated action from California’s leadership.

The Phillips 66 shutdown underscores the tension California faces between progressive environmental policies and real-world energy demands. It demonstrates that while reducing carbon emissions and transitioning to clean energy remain state priorities, practical measures must also ensure that residents have access to affordable fuel and that the economy continues to function smoothly. Governor Newsom’s response in the coming months will be closely watched as a test of his ability to navigate this challenging balance.

Ultimately, the closure of Phillips 66’s Los Angeles refinery serves as a stark reminder of the fragile intersection between policy, economics, and energy security in California. The state’s leaders must act decisively to prevent shortages, support affected workers, and maintain public confidence, all while staying committed to long-term environmental objectives.