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...