Gas prices are setting record high prices and breaking them just as fast.

Starting July 1, they'll be up another 2.43 cents, thanks to the new B.C. Carbon Tax.

The carbon tax will apply to virtually all fossil fuels, including gasoline, diesel, natural gas, coal, propane, and home heating fuel.

It was designed to hit gas guzzlers the hardest.

B.C. is the first region in North America to impose the consumer-based carbon tax.

Ministry of Finance Communications Manager, Charles Suenderman, says the money will be returned to British Columbians through lower taxes.

"Over the next three years, the government will reduce personal and corporate income taxes by more than $1.8 billion, the same amount
estimated to be raised through the revenue-neutral carbon tax," says Suenderman.