In 2023, the tax expenditure on petroleum for fossil fuel production in the UK stood at an actual figure. From 2024 onwards, forecasts predict a gradual increase in tax expenditure values, from 3.56 billion USD in 2024 to 3.94 billion USD in 2028. Year-on-year variations show a consistent increase with a Compound Annual Growth Rate (CAGR) reflecting steady growth in the forecasted period. Specifically, each year is projected to experience an average rise of approximately 2.5%.
Future trends to watch for include the potential impact of global energy transition policies and advancements in alternative energy technologies, which might influence the UK's fiscal strategies regarding fossil fuel production and related tax expenditures. Additionally, shifts in international oil prices and regulatory changes could also affect future forecasts in this sector.
