Politics
Phillips 66 plans new fuel pipeline into California, challenging refiners’ hold on supply
Phillips 66 announced plans in August for a pipeline to bring gasoline and other refined fuels into California, which has long depended on in-state producers. The project could reshape the state’s fuel market as the company breaks from a powerful oil-industry association.
SACRAMENTO — Phillips 66 plans to build a pipeline carrying gasoline and other refined fuels into California, a move that could introduce a new source of supply in a market long dominated by the state’s own refiners.
The company announced the plan in August. If built, the pipeline could weaken the influence of major California refiners over the state’s fuel supply, though its potential effect on prices and consumers is not yet clear.
The proposal comes as the oil industry’s political coalition in California shows signs of division. Phillips 66, one of the industry’s most influential companies in the state, left a powerful oil-industry association last year. The company is led by CEO Mark Lashier.
Oil companies have wielded substantial political influence in California and have often clashed with Gov. Gavin Newsom. Phillips 66’s decision to pursue a project that could bring fuel from outside the state may complicate that industry alignment while changing how California is supplied.
The pipeline’s significance will depend on whether the project proceeds and how much fuel it ultimately brings into the state. California has relied for decades on local producers, making any new supply route a potential shift in the balance of the fuel market.