The forecasted tax expenditure on all fossil fuels for consumers in Canada reveals a declining trend from 2024 to 2028. In 2023, tax expenditure stood at $835 million USD. The year-over-year decrease ranges from approximately 6.7% in 2024 to about 9.3% by 2028. The five-year compounded annual growth rate (CAGR) points towards an average reduction of approximately 6.9% per year.

Future trends to watch for include:

Potential policy shifts towards renewable energy and their impact on fossil fuel tax expenditures.
Economic factors and consumer behavior influencing fossil fuel consumption.
Environmental regulations and international agreements shaping the fossil fuel landscape in Canada.