When Phillips 66 this week announced its plans to close its Los Angeles-area refinery in late 2025, many observers noted the announcement came just days after California Gov. Gavin Newsom signed a new law aimed at refineries.

The energy giant denied that the move was connected with the recent signing of a new energy regulations bill in the state.

Oil company Phillips 66 has announced that it plans to shut down a Los Angeles-area refinery that accounts for about 8% of California's refining capacity The company indicates it will remain operating in California.

Phillips 66 said it will shut its large Los Angeles-area oil refinery late next year, delivering a blow to California's fuel supply amid complaints about the state's high prices.

Phillips 66 plans to close its refinery near the Port of Los Angeles in late 2025. The company’s announcement Wednesday follows Gov. Gavin Newsom’s signature of legislation implementing new oil controls.

The refinery accounts for about 8% of California's refining capacity, according to the state's Energy Commission. The company said it will remain operating in the state.