In 2023, Italy's tax expenditure on all fossil fuels for all sectors stood at $8.79 billion, using 2020 constant dollars. Forecasts indicate a steady decline in expenditure, dropping to $8.73 billion in 2024 and continuing to decrease to $8.55 billion by 2028. The year-on-year variation begins with a modest decrease of 0.69% from 2023 to 2024, gradually slowing to a 0.35% reduction annually by 2028. This trend reflects Italy's ongoing efforts to reduce fossil fuel dependency, improve energy efficiency, and embrace transitions to renewable sources. The CAGR forecast over 2024 to 2028 estimates an annual decline of approximately 0.55%.

Future trends to watch for include:

Potential regulatory changes that may further accelerate reductions in fossil fuel subsidies.
Adoption rates of renewable energy technologies and their influence on fossil fuel consumption.
Global economic factors impacting energy prices and consumption patterns in Italy.