Wedoany.com Report-Aug. 29, Phillips 66, a major U.S. oil refiner, will begin shutting down its 139,000-barrel-per-day refinery in the Los Angeles area starting in September 2025, according to sources familiar with the matter. The closure process is set to commence as early as next week, with operations winding down progressively.

The Phillips 66 refinery in Immingham, Britain, April 10, 2025.

The company announced in 2024 that it would permanently close the facility by October 2025. On August 28, 2025, a Phillips 66 spokesperson confirmed: “The refinery units will begin idling by Q4 2025 as planned... our timeline remains unchanged.” The statement highlighted that the shutdown involves a complex, multi-phase process but did not provide further details on the schedule.

The Los Angeles-area refinery employs approximately 600 workers and 300 contractors, with over half of the employees being hourly workers represented by the United Steelworkers Union. Most of these workers are expected to be laid off in December 2025. Phillips 66 declined to comment on the status of its workforce.

The closure will impact California’s motor fuel supply, as the state is the most populous in the U.S. and faces some of the highest average gasoline prices nationwide. The Los Angeles-area refinery, together with Valero Energy’s 145,000-barrel-per-day Benicia refinery, which is also slated for closure, accounts for roughly 20% of California’s gasoline production. Valero’s Benicia facility is one of its two remaining refineries in the state.

The shutdown of these refineries is expected to create challenges for fuel availability in California, where demand for gasoline remains significant. The state’s high fuel prices have often strained relations between local authorities and oil companies, though Phillips 66’s closure aligns with its previously announced strategic plans.

The company is taking a methodical approach to ensure a safe and orderly shutdown, prioritizing operational and environmental considerations. The closure reflects broader shifts in the energy sector, as refiners adapt to changing market dynamics and regional demands.