The oil company said the shutdown was not a direct response to the new law, but added to the lack of refining that has driven up gas prices in the Golden State.

“With the long-term sustainability of our Los Angeles refinery uncertain and affected by market dynamics, we are working with leading land development companies to evaluate the future use of our unique and strategically located properties near the port of Los Angeles,” Mark Lashier, Phillips 66 Chairman and CEO said in a statement Wednesday.

“Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our business and customer demands,” he added.

The company plans to cease operations in the fourth quarter of 2025. The Los Angeles oil refinery has approximately 600 employees and 300 contractors.

On Monday, Newsom signed into law a bill requiring the state’s oil refineries to maintain a minimum amount of fuel to avoid supply shortages. California lawmakers have linked supply shortages to rising gasoline prices.

Specifically, the law would authorize the California Energy Commission (CEC) to oversee the state’s refineries and ensure they meet a minimum quantity of fuel, feedstock, and blending components. The commission would also require refiners to have a resupply plan for future maintenance outages.

Big oil companies “have reaped unprecedented profits because they can,” Newsom said Monday at a news conference. “Big Oil doesn’t have your back, period. »

However, a company spokesperson told the Washington Examiner via email that the decision was not related to Newsom’s recent bill but rather based on several factors such as the future of the site. In the press release, Phillips 66 said it has engaged with two real estate development companies to evaluate its 650-acre sites in Wilmington and Carson, California.

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Generally speaking, gas prices in California are much higher than in the rest of the country, a phenomenon linked to the closure of oil refineries.

Philip 66, in a press release, said the state had indicated that it would be essential to increase its oil supply capabilities, adding that it would work with the state to maintain current gasoline levels and respond to consumer demands. The company added that it would look to supply gasoline outside its refinery network and obtain renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in San Francisco.