ALERT: Gas Prices Set To SPIKE To $8 Per Gallon

HAPPENING NOW: California’s green energy crusade claims another victim as Phillips 66 begins shutting down its massive Los Angeles refinery next week, threatening to spike gas prices by up to $1.47 per gallon while eliminating 900 American jobs in the process.

Story Snapshot

Phillips 66 is set to start winding down the 139,000-barrel-per-day LA refinery next week, resulting in the elimination of approximately 900 jobs by December.
Closure removes 17% of California’s refining capacity, potentially driving gas prices up $1.47 per gallon, with some warning of $8-per-gallon gas.
The state’s aggressive climate policies force a strategic retreat from traditional energy production.
No comprehensive transition plan announced for displaced workers or affected communities.

California’s War on Energy Independence Escalates

Phillips 66 confirmed this week that operations at its Los Angeles-area refinery will begin shutting down as early as next week, marking another casualty in California’s relentless assault on domestic energy production.

The 139,000-barrel-per-day facility has supplied 13% of Southern California’s gasoline and 29% of its diesel fuel, representing critical infrastructure for regional energy security. This closure directly results from the state’s punitive regulatory environment and decarbonization mandates that have made traditional refining operations increasingly unviable.

Economic Devastation Hits American Workers

The refinery closure will result in the elimination of approximately 900 jobs by December 2025, including 600 direct employees and 300 contractors represented by the United Steelworkers Union. These are high-paying manufacturing jobs that have supported middle-class families for generations, now sacrificed on the altar of progressive climate ideology.

Phillips 66 has declined to provide detailed transition plans for affected workers, leaving families uncertain about their economic future while state regulators celebrate their green energy “victory.”

Fuel Price Crisis Looms for Consumers

Energy analysts warn that removing 17% of California’s refining capacity creates a “dangerous haircut” that could trigger catastrophic price spikes. Expert projections estimate gasoline could increase by up to $1.47 per gallon, with some warning of $8-per-gallon gas during supply disruptions.

California’s isolated fuel market, with limited pipeline connections and regulatory barriers to imports, makes the state particularly vulnerable to these artificial supply constraints created by its own policies.

The closure forces California into greater dependence on fuel imports, ironically increasing emissions from port operations while claiming environmental benefits. This perfectly illustrates the contradictions and economic illiteracy driving progressive energy policy, where virtue signaling takes precedence over practical consequences for working families.

Strategic Implications for American Energy Security

This refinery shutdown represents more than local economic damage—it signals a broader retreat from American energy independence. California’s regulatory assault on traditional energy production weakens national security by reducing domestic refining capacity and increasing reliance on foreign imports.

The Valero Benicia refinery is scheduled to close in 2026, further diminishing the state’s energy self-sufficiency and creating additional vulnerability to supply chain disruptions.

Phillips 66’s pivot toward renewable fuels, while strategically understandable, highlights the market distortions created by government interference. The company’s renewable fuels segment reported a $116 million loss in Q3 2025, demonstrating that these “green” alternatives remain economically unviable without massive subsidies and regulatory mandates.

California’s energy transition lacks the comprehensive planning necessary to prevent market shocks and social disruption, exposing residents to the inevitable consequences of ideologically-driven policymaking over sound economic principles.