Gas prices surge as LA council confronts fallout from Phillips 66 refinery shutdown

Pain at the pump and pink slips piling up — Los Angeles is getting crushed from both sides.

A Phillips 66 refinery shutdown is now hitting in real time, slamming drivers with sky-high gas prices while gutting local jobs and squeezing an already fragile fuel supply.

Regular gas has blasted past $8 a gallon, turning everyday commutes into a financial hit for millions of Angelenos all after a key piece of the region’s energy backbone went dark.

The massive Phillips 66 refinery, stretching across LA’s Carson and Wilmington, once a major source of in-state fuel, shut down in late 2025, sending ripple effects straight to the pump.

When it announced the closure, Phillips 66 pointed to declining gasoline demand, rising costs, and the challenges of operating under California’s strict environmental and fuel regulations.

“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 Phillips 66, said at the time of announcing the closure.

Roughly 600 employees and 300 contractors were tied to the facility. Layoffs began late last year and are still rippling through 2026 as the site sits idle.

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“We understand this decision has an impact on our employees, contractors and the broader community,” said Lashier.

The Los Angeles City Council moved unanimously Friday to respond, focusing on job losses and the uncertain future of the sprawling site.

Behind the scenes, the city says it is working to connect displaced workers with retraining and job placement. But the bigger shift isn’t something City Hall can quickly fix.

Phillips 66 says it will continue supplying California through imports and other sources. But the shutdown strips away a chunk of in-state refining capacity in a system that already runs tight.

That leaves California leaning harder on imported fuel — and more exposed every time global markets flinch.

Still, the company says it will remain committed.

“Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands,” said Mark Lashier.