PARLIAMENT | Putrajaya will face a major dilemma if RON95 petrol prices exceed RM2.50 per litre, Economic Planning Unit Minister Abdul Rahman Dahlan told the Dewan Rakyat today.
On the one hand, high petrol prices will cause inflation, while on the other, capping prices would put Malaysia's credit rating at risk, he said.
"The government cannot (come out with a) hedging measure directly. We will be in a dilemma when the petrol price increases to RM2.50 per litre," he said during Question Time.
According to Abdul Rahman (photo), Putrajaya could dampen rising cost of living issues by increasing the 1Malaysia People's Aid (BR1M) cash handouts, but that would not stop inflation.
"In the second scenario, we will (have to) cap the petrol price when it reaches RM2.50.
"This will ease the pressure of inflation, but at the same time, we will have a situation where rating agencies will say we are interfering in the management of oil prices," he said.
In view of this, Putrajaya had to handle the situation with caution, said Abdul Rahman in response to a question from Abdul Khalid Ibrahim (IND-Bandar Tun Razak).
Abdul Rahman also took the opportunity to criticise opposition parties for blaming the government whenever fuel prices are raised, but keeping mum when fuel prices go down.
"They never praise us. When petrol price goes up, we have to get ourselves ready for any slander.
"To teach them a lesson, vote BN for a transparent and honest government," he said.
The price of RON95 went down by 8 sen per litre today, the first price decrease in six weeks. - Mkini
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