Members of Parliament have raised concern over the rising cost of fuel and the depreciation of the Uganda shilling against the US dollar, warning that the trends could further increase the cost of living and doing business.

A litre of diesel is now selling at as much as Shs7,000 in some upcountry towns, while petrol is retailing at about Shs6,647, with motorists and businesses facing increasingly high operating costs.

The Leader of the Opposition, Joel Ssenyonyi, said the high pump prices were becoming a burden to ordinary Ugandans, as the cost of fuel directly affects the prices of essential goods and services.

Ssenyonyi said fluctuations in petrol and diesel prices, which have reached between Shs6,800 and Shs7,000 per litre, were contributing to the rising cost of living.

He said the high fuel prices were affecting the cost of food, clothing, transport and school fees, among other household expenses.

The concerns were raised during a parliamentary debate in which MPs also discussed the impact of the rising value of the US dollar on businesses and consumers.

Mbale City Industrial Division MP Karim Masaba urged the government to reconsider its monthly computation of taxes on imported goods based on the cost, insurance and freight (CIF) value of imports.

Masaba said traders were concerned that the rising value of the dollar would increase the cost of imported goods and consequently raise the taxes assessed by the Uganda Revenue Authority.

He also questioned the government's decision not to use part of the country's foreign exchange reserves to stabilise the shilling.

Masaba noted that although Uganda's foreign exchange reserves had increased to about $6.5 billion, the Central Bank had instead opted to increase the cash reserve requirement for commercial banks.

Bukimbiri County MP Eddie Kwizera called for the government to establish a comprehensive tax policy to guide revenue mobilisation and provide greater predictability for businesses.

Deputy Speaker Thomas Tayebwa directed the Minister of Finance, Planning and Economic Development to present a statement to Parliament on the cost of the dollar and its impact on the economy.

He also directed the Minister of Energy and Mineral Development to explain the rising pump prices and their implications for consumers.

The ministers are expected to present the statements to Parliament as MPs seek government measures to contain the rising cost of living and ease the pressure on businesses and households.