PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG

STUDENTS

A Research Project Presented to the Faculty of Senior High School Science, Technology,

Engineering, and Mathematics (STEM)

Urdaneta City National High School

In Fulfillment

Of the Requirements for the Subject

Research 2

by

Daniella Lyza A. Lucero

Shaun Marion Zeus Rabago

Christine Aizle Rosal

 January 2023

CHAPTER 1:

THE PROBLEM

Background of the Study

The inflation rate of gasoline is one of the widely known social issues in every country.

The increase in gasoline prices affects every person in their daily lives. Many factors are

affecting the rise of gasoline rate inflation in the world.

According to the study by Schröder (2022), the instability of the world oil market has

worsened due to Russia's invasion of Ukraine. If an oil price shock occurs, it would have a

tremendous impact on the economy. The price of crude oil breached $130 per barrel in March

2022, the highest level since 2008, during the start of Russia's invasion of Ukraine. Since then, it

has fallen to around $100 in April before climbing to $120 in May after the European Union

temporarily banned Russian oil. Some are concerned about the potential impact of a $200 per

barrel oil price surge on the growing economies of Asia in the coming months.

Geopolitical tensions between Russia and Ukraine have increased instability in the

Middle East and oil market nervousness (Kolaczkowski, 2022). According to Kolaczkowski, one
of the main reasons for the rise in oil prices is geopolitical tensions and instability. Tensions

between countries may lead to instability, resulting in a delay in oil production and a shortage of

oil supply (Dalisay, 2019).

Record-high prices at the pump, a looming diesel shortage right when the summer season

is starting, and an uncooperative OPEC are probably reasons for many headaches among

government officials worldwide. Yet these are, in fact, manifestations of deeper problems in the

energy industry. Underinvestment in the past decade or so, Europe and, to a lesser but no less

significant extent, North America have made it a mission to reduce the reliance on fossil fuels

and increase the dependence on renewable energy. This has spurred an investor exodus from oil

and gas and the emergence of the so-called ESG investing trend.

Money for new oil and gas developments has become more challenging to tap as banks

join the ESG movement, and companies have had to cut back on spending. Saudi Arabia's oil

minister warned that underinvestment in oil and gas would have a boomerang effect on

consumers earlier this year, and not only the minister. Many OPEC officials have made the same

warning but, apparently, to no avail. After all, none other than the International Energy Agency

said last year the world does not need new oil and gas exploration because people won't be

needing any more unique oil or gas supply. Of course, it was only a few months later that the

IEA changed its tune, calling on OPEC to boost production, and it demonstrated one of the harsh

realities of the energy industry: the process cannot reverse because that has been going on for

years in a matter of months. Broader inflation trends, largely driven by soaring energy costs,

have not passed the energy industry itself.

In the United States shale patch, production costs have risen by twenty percent. Two

companies recently warned that the company would be reporting higher prices for its second
quarters Continental Resources Hess Corp, are far from the only one experiencing this higher

cost (Irina Slav, 2022).

Revenue from oil corporations and fuel taxes margin play a similar role in determining

fuel costs (Albulescu and Mutascu, 2021). It is not possible to use unobserved component

models to calculate the inflation uncertainty, even though precise empirical methods are

provided. Given the uncertainty surrounding the inaccuracy of market participants' predictions of

price dynamics, it is impossible to verify their authenticity. As a result, the researchers provide

four new insights to the body of knowledge about the relationship between inflation and

uncertainty in the European Union member nations (EU). The researchers start by looking at

how gasoline costs affect the relationship between inflation and uncertainty.

Presuming that fuel prices are a significant cost component of all goods and services, a

price increase immediately causes inflation. Additionally, increased gasoline price volatility

affects inflation. Presuming that consumer inflation expectations and fuel prices are connected,

there is uncertainty. Because fuel costs differ across nations and are affected by the actions of oil

firms and the existing tax structures, the researchers focus on fuel prices rather than crude oil

prices. Additionally, the researchers contrast the impact of gasoline and diesel prices, and since

diesel prices directly pass through transportation costs, the researchers anticipate a higher effect

of diesel prices on inflation. (Albulescu et. al, 2022)

Poland's May 2022 inflation rate of fourteen percent was a record for the previous 24

years, according to the Republic's General Statistical Office (GUS). Additionally, there is

currently at least one percent inflation in the Czech Republic. The current generation is forgetful.

Inflation in the Czech Republic was 14.2 percent in April 2022, and the number will increase in

May, June, and perhaps July. Economist Jakub Seidler from the Czech Banking Association
predicts a peak of above sixteen percent in the middle of 2022. However, the higher inflation, the

greater the distance between these two economic subgroups. It is also probable that many people

in the Czech Republic are just starting to compute the losses accurately now when inflation has

already reached double digits. Here are a few more instances. The pandemic was the primary

driver of price increases, which were made worse by economic shocks and the current energy

crisis, also has been made worse by Russia's conflict with Ukraine and the imposition of

sanctions by the EU; and the U.S. As a result, the economy, including agriculture, industry, and

services, is starting to feel the effects of decades of steady fuel and energy costs and its recent

surge (Kievich, 2022).

Energy exporters in the area, including the Bolivarian Republic of Venezuela, Colombia,

Ecuador, Guyana, the Plurinational State of Bolivia, Trinidad and Tobago, and others, are

benefiting from the steep increase in the price of oil and gas. The impact is indirect because

derivatives (like gasoline) are imported more by the region's hydrocarbon-exporting nations.

Pressures on the trade balance will probably have a detrimental impact on states that import

energy, such as those in Central America (except for Trinidad & Tobago and Guyana) and the

Caribbean. The high cost of fossil fuels produces a paradox: on the one hand, low-profitability

projects become alluring, as may be the case with unconventional wells, such as the formation of

hydrocarbons at Vaca Muerta in Argentina; on the other hand, it is a motivation to speed up the

introduction of renewable energy sources. The overall result will rely on the supply response's

short- and medium-term capacity. For instance, on March ten, Petrobras announced hikes in the

price of gasoline at refineries of 18.8 percent, diesel at 24.9 percent, and liquefied petroleum gas

at sixteen percent per its pricing policy based on international parity set in 2016. (LPG). While
supporting investments in regional refining, this approach makes consumers more susceptible to

changes in global prices (Bárcena, 2022).

The Paris agreement to prevent climate-related disasters also jeopardizes the fossil-fuel

sector, which supports several economies, including Azerbaijan. Overall, climate change and the

associated transition to a greener environment pose a risk to countries, particularly fossil fuel

exporters. Furthermore, reducing oil production to meet the Paris agreement's main scope on

global temperature is threatening the exchange rate, which is the primary inflation reducer in the

economy. According to research conducted by the United Nations (2020), fossil fuel-producing

countries must reduce fuel production by six percent to meet global temperature reduction

targets. In light of this situation and the World Bank's oil price projections for 2021, a new

worst-case scenario was developed and implemented into the BVAR model to forecast inflation

via the Real Effective Exchange Rate (REER) between 2021 and 2030. According to the worst-

case scenario, which saw twenty-one percent less fossil fuel revenue from exports, inflation

became twice as high as in the best-case situation. Finally, the impact of climate change

combined with the transition to a low-carbon economy by reducing fossil fuel production

resulted in approximately 1.8 percent additional inflation per year between 2021 and 2030

(Yusifzada, T. 2022).

According to the study by Przekota et al. (2022), Most evaluations assessing the effects

of oil shocks on the economy in the last several decades (Bernanke et al.). The macroeconomic

effects of energy costs, particularly oil prices, in the post-World War II era have been the subject

of thorough analysis. Numerous studies have revealed that rising oil prices have a

significant pernicious on GDP (Bildirici et al.), although assistance has given to energy

importers. Numerous studies have identified an unsymmetrical link between domestic products
and oil prices (Mork et al.). Price rises have a higher impact than price cuts (Federer et al.). Some

research findings suggested that the influence of the effects of oil price variations on changes in

GDP was negligible after accounting for other macroeconomic factors (Darby, M.R). Instead of

being the main factor contributing to the recessionary impacts of rising oil prices. Oil price

changes, thereby, may result from endogenously driven effects on monetary policy (Barsky et

al.). The rise in oil prices caused inflation to increase, prompting central banks to tighten

monetary policy.

The use of public transportation has reportedly been impacted by changes in price of

petrol. Changes in gas costs could have a significant social impact on commuters and decision-

makers. In addition to making it more expensive to fill up the tank, higher gas prices affect the

general economy and travel habits. The safety level of transportation can be impacted by changes

in petrol prices. The researchers begin by considering how the price of gasoline affects the link

between inflation and uncertainty. Fuel prices account for a sizable portion of the cost of all

goods and services, so an increase in its price inevitably leads to inflation. Higher gasoline price

volatility also impacts inflation uncertainty, given that customers' inflation expectations are

linked (Safaei et. al, 2021).

According to the study of Ji Qi (2022), since the COVID epidemic began two years ago,

countries have intensified and experienced new economic challenges Widespread inflation is one

of the problems that most profoundly strains society. In the study of Mbah and Wasim (2022),

the rapid rise in oil, natural gas, and food prices just a few days into this crisis, which is already

wreaking havoc on the majority of global economies, inflation is quickly growing. Household

consumption will likely be impacted, and there will likely be increased uncertainty, skyrocketing

power prices, a drop in investment owing to political risk, and barriers to economic progress.
 The Islamic Republic of Iran was facing a fiscal crisis and decided to raise gasoline

prices at the end of 2019. Regardless of the regressive gasoline subsidies favoring the rich, it

establishes that the rise in the prices of gasoline has a higher impact on the poor due to the

indirect effects and relatively low incomes. National Iranian Oil Products Distribution Company

(NIOPDC) raised the price of gasoline by fifty percent for usage up to the re-introduced rationed

amounts (e.g., sixty liters/month for private cars) and a two hundred percent consumption over

the ration amount as of November 15, 2019. One day before the start of price reform, the official

announcement stated that all proceeds from the price rise were sent back to the eighteen million

means-tested households. This abrupt shift was made and executed overnight, which sparked

violent public protests (Atamanov et al., 2022).

The impact of gasoline on the government and society is significant. It is a critical

commodity that transports energy. As the sole fuel source, the government must build up

domestic production through the construction of refineries and, in the event of a shortfall, must

import gasoline to fill the demand. Both of these initiatives require the government to invest

significant quantity of resources. On the other hand, Iran's government sets the price of gasoline

(Jahangard, as cited in Saryazdi et al., 2022). By altering the cost of transportation (Khattei &

Eqdami, as cited in Saryazdi et al., 2022), as well as indirectly by raising the cost of other items

and inflation (Meibodi et al. as mentioned in Saryazdi et al., 2022), the strategy of modifying the

price of gasoline also influences its consumption and production patterns (2010). In other words,

gasoline is an economic issue with political, social, cultural, and environmental implications, and

Iran's pricing strategy has never been straightforward (Taheri et. al, as cited in Saryazdi et. al,

2022).
 The Consumer Price Index (CPI), a weighted average of prices for various products and

services, is used to measure inflation. With the arrival of 2018, the Philippines' inflation rate

increased. By September 2018, inflation had risen from three percent in December 2017 to seven

percent. The newest data show that inflation in the Philippines rose to six percent in June,

roughly double the rate from the corresponding month in 2016. The PSA reported that the June

inflation rate of six percent, up from four percent for the same month in 2021, was within the

range of the central bank's predicted inflation rate of between six percent and seven percent

(Cruz et al., 2018).

After several weeks of oil price rollback, another oil price hike happened on Tuesday,

August 29. The oil price projection increase ranges from P1.40 per liter for gasoline and P6.10

per liter for diesel and kerosene. According to the Department of Energy (DOE), the new oil

price adjustment is due to demand for petroleum products in other countries as the winter season

approaches. DOE also cited the massive form of petroleum products in the world market due to

the ongoing war between Russia and Ukraine. The oil price hike is implemented at 6:00 a.m. The

last oil price adjustment was announced on August 23 with P0.70 per liter in gasoline and per

liter in diesel in some oil companies. A total of P18.15 per liter of gas and P13.70 per liter of

diesel has increased this year (League, 2022).

Given the interconnectedness of the economy, it follows that rising commodity prices,

such as those for fuel, will raise the cost of production for all industries that use those

commodities as inputs. According to this report, people, notably the researcher as a student, are

most affected by the inflation crisis in the transportation sector. According to estimates, changes

in fuel prices of ten percent, twenty percent, and thirty percent will cause total output changes of
PHP one hundred seventy-five billion, PHP three hundred fifty billion, and PHP five hundred

twenty-five billion (Mbah et al., 2022).

The petroleum industry is vital to the Philippine economy. In the Philippines, gasoline

prices have skyrocketed. As a result, it observed the behavior of the factors influencing gasoline

rate inflation in the Philippines with people's lives. The price increase is profoundly affecting and

having a high impact on people in the Philippines, particularly low-and middle-income

households (Domondon et al., 2021)

Pangasinan's headline inflation rate increased to five percent in May 2022, up from four

percent in April. It was the province's highest inflation rate since May 2021, which was five

percent. Meanwhile, Pangasinan's inflation rate in May 2022 causes a drop in the indices of

Housing, Water, Electricity, Gas, and Other Fuels, which stood at eight percent. In particular, the

transport commodity group rose further due to higher inflation rates in gasoline and motorcycles,

which were fifty-one and two percent, respectively, in May 2022, two percent higher than the

previous month. Meanwhile, gas and bicycle inflation rates fell to eighty-five and seven percent,

respectively (PSA, Region I, Ilocos Region, 2022).

LITERATURE REVIEW

These are the gathered and collected literature and studies of problems encountered in

gasoline rate inflation, along with the following variables:

Age

According to Schoenherr (2017), increases in gasoline prices is associates with increases

in child maltreatment referral rates, finds, a new study from the Brown School at Washington
University in St. Louis. According to the survey, rising gas prices hurt families financially and

may increase child abuse and neglect. The cost of gasoline is not only helpful as an exogenous

shock to families' disposable income, but it is also an important economic indicator linked to a

variety of social outcomes. Gas prices are related to physical activity, obesity, and life

satisfaction.

The study of Severen et al. (2022), estimates that youths starting to drive now—ages 15

to 18—will push less throughout their adult lives than cohorts before or after them due to the

rising cost of gas. They will be more inclined to use fuel-efficient vehicles and take public

transportation to work.

A study conducted by Torrevillas (2012) describes a conversation with a guest speaker

that day, Bishop Bienvenido "Benny" Abante of the Philippine Baptist Church. Abante stated

that if given the opportunity, one of the things he would like to work on as a legislator is

lowering the Expanded Value Added Tax (EVAT) from its current rate of 12 percent to eight or

even six percent. He was especially vocal about extending the 20% senior citizens discount to the

purchase of gasoline or diesel fuel for elderly vehicles. Many of the country's elderly are still

working to meet their basic needs. Even if they receive a pension, it is all spent on medications

and maintenance. The situation worsened for working seniors who must rely on public

transportation, particularly during the rainy season, when they must contend with picky and

snobbish taxi drivers. As a result, those who own a car will appreciate this added benefit.

According to Morrissey (2022), Teenagers have faced many challenges in recent years,

including virtual school, lockdowns, and limited social opportunities. The teenagers are now

struggling with high gas prices, as are many other Americans. The national average gas price

was $4.71 per gallon on June 2, 2022, a sharp contrast to a year ago, when it was just above $3
— a 55% increase. Teenagers are particularly affected by high gas prices because they are part of

a lower-wage, part-time workforce. Teenagers will find it tougher to afford to drive to school,

extracurricular activities, or work as gasoline prices rise. It also has an impact on teenagers'

earnings at a time when they may be looking for work. It also affects teenagers' salaries when

they may be trying to buy necessities, contribute to their family's income, or save for college.

Sex

The recent increase in oil prices has raised concerns about its impact on South Africa's

poor. The solid economic performance recorded from 1995 to 2005 did not contribute to a

significant reduction in poverty in this country, particularly among women, who are

disproportionately poor households. Without an increase in capital inflows, the crisis would

have significantly depreciated the currency, reducing women's market opportunities and

increasing women's workload to men (Fofana, 2015).

Fuel pricing and its gender-differentiated effects are hardly studied in the energy and

gender literature. This empirical study investigates whether energy pricing has a different impact

affects on men and women when it comes to kerosene oil use in rural Bangladesh. Higher

kerosene prices have a high negative impact on female study duration and night-time leisure

hours. Women are less successful than men in compensating for these losses by increasing

efforts in income-generating activities (Chowdhury et al., 2020).

The study of Scott et al. (2013) investigates the disparities in experiences of men and

women who live in areas directly affected by oil and gas development, highlighting how the

industry contributes specifically to 'gender gaps' in the unequal distribution of assets and risks.

In the study conducted by Fofana (2012), the recent increase in oil prices has raised

concerns about its impact on South Africa's poor. Furthermore, male and female labor supplies
are investigated using careful modeling of the household economy and the market economy. As

well as to household demand for energy and non-energy commodities. Labor earnings are also

declining while the wage disparity between men and women widens. Women are more

vulnerable to oil price shocks because they have lower participation rates in non-oil energy and

export-oriented industries than men. Regardless of the tax-financing option, the gender

employment gap widens under fixed petroleum price scenarios.

Grade Level

According to Elliott (2022), the recent increase in gas prices is affecting everyone's

wallet right now, but it's especially difficult for people on fixed incomes, particularly college

students. N.C. is popular among college students. State senior Omar Jaramillo, who starts his day

before the sun comes up, doing last-minute preparations on his lesson plans, says the increase in

gas prices, combined with his only fixed income, has a great impact on his life because he is only

a student teacher at a high school an hour away from his Raleigh home.

According to the report by Lawrence (2022), Every week and a half, Senior James Barrett

spends $75 to fill up his tank. James usually waits until his tank is almost empty before filling it

up, which saves his money on gas. "It makes me feel like I'm wasting much money by buying

something as basic as transportation," James explained. Barrett describes paying for gas as "not

difficult, but it's not easy," adding, "It sucks." "I despise going to the gas station." Barrett's

parents occasionally give money for gas because the price of gas is so high, since Barret's parents

only has a summer job. Jordan Wingert, a junior at Decatur, spent about eight months looking for

a car with good gas mileage. Jordan was so focused on gas prices - Jordan just wanted good gas

mileage. "With the rising gas prices, I'm worried about getting gas because it's gone from $35 to
$43 to fill up my tank since I got my car," said Wingert, who has only had a car for three weeks.

"I've been driving cautiously. "I don't drive for fun; I drive when I need to."

College students, particularly those with long commutes, are concerned about rising gas

prices and the cost of getting to, from the campuses, internships, and jobs. Inflation, combined

with the fallout from Russia's invasion of Ukraine, has pushed up gas prices: according to AAA,

gas in the United States now averages more than $4 per gallon, up from less than $3 a year ago.

Gas prices in some parts of California are around $6 per gallon (Georgetown University, 2022).

The current average price of gasoline in Athens cost $3.17 per gallon, which is out of

reach for most college students. William Redding, a third-year linguistics major, has begun to

reconsider a daily commute to and from campus, having to decide whether to drive or take the

bus. However, Redding's off-campus shuttle only runs until 6 p.m., so Redding's frequently stays

on campus at one friend's dorm. When asked about gas prices, Redding said, "They're too high

for me, but I know I'm going to have to pay the price." As a result, many students limited the

social lives to save money, trying to strike a balance that allows them to have experiences while

also being aware of their reality. Many understand that once they leave campus, returning to

study with friends or participating in extracurricular activities will be an added expense, which

some cannot afford (Davis, 2022).

Area of Residence

According to Molly et al. (2013), gasoline prices rose sharply from 2013 to 2008,

reaching a higher level in real terms than the previous peak in the early 1980s. Although the cost

of gasoline has been quite volatile since then, it has remained high by historical standards. The

run-off and rising gasoline prices have sparked much debate about the long-term impact of
higher gas prices. While much attention has paid to issues such as changes in traffic conditions,

motor vehicle fuel economy, and modes of transportation, another factor to consider is the

impact of residential location and the geographical distribution of house housing units. Rising

gasoline prices raise the cost of driving to work, prompting some people to choose to live closer

to their place of employment than they would otherwise. We expect the quantity or price of

housing in those areas to increase relative to more distant locations as housing demand grows

and places closer to employment centers.

In the study of Sarne (2019), it tackles people’s curiosity about the causes of the regular

differences in gas pricing between stations. Researchers will not discuss the costs of competing

fuel brands or the pricing of two stations, one in Metro Manila and the other in a neighboring

province. The researchers will tackle price variations within the same fuel brand and near stores

(even ones on the same street). According to traditional wisdom, a station's pricing is affected by

its location, or more specifically, how far it is from the closest depot for its brand.

The study of Chi et al. (2016) claims that while many factors influence people's decisions

about where to live, the impact of fuel costs has not fully analyzed. Using data from the

American Housing Survey from 1996 to 2008, this study analyzes changes in gas prices and

residential relocation decisions. We discovered that a higher percentage of movers choose

locations close to their places of employment when petrol prices are higher. The results have

implications for how to deal with how unstable gas prices affect land use planning and

regulations; resilient "smart cities or communities" are one potential remedy.

According to Knittel et al. (2021), the short-term elasticity of gasoline consumption is

determined by vehicle distances traveled and the efficiency with which each mile is navigated.

The latter is uncommon. The researchers used novel micro-level data on on-road fuel
consumption and fuel prices in Japan to estimate contemporaneous and dynamic effects of

gasoline prices on on-road fuel economy.

Mode of Transportation

(Ming-CheChao et al., 2015) they investigated the effects of fuel costs on the use of

public transportation in Taiwan. These are the empirical findings. The researchers begin by

confirming that fuel prices play a significant role in determining transit demand. Gas prices have

a significant positive impact the bus and MRT usage. Second, MRT usage is more sensitive in

increase of gas prices and income than bus and rail usage. Third, there are disparities in how

using the bus, and the MRT is affected by gas prices. People use the bus and MRT more

frequently when gas prices rise than when prices fall. Taiwan imports almost all of its crude oil.

In the study by Mattson (2012), Rising fuel prices in recent years have resulted in

significant cost increases for public transportation agencies. However, one potential benefit of

higher gas prices is an increase in transit ridership. People may seek ways to reduce fuel

consumption as the cost of refueling a car rises, and one such option is public transportation.

Several news reports in the United States have indicated that transit ridership has increased as

gas prices have risen, but studies have been conducted to confirm or quantify this relationship.

According to Iseki (2014), all modes of transportation saw significant long-term

consequences of the increase in gas prices, with a rise in overall ridership ranging from 0.84

percent for the bus to 1.16 percent for light rail, with commuter rail, heavy rail, and aggregate

transit all increasing in response to a 10% increase in gasoline prices. The effects were more

significant at higher gasoline price levels of over $3 per gallon, with a ridership increase of 1.67

percent for bus, 2.05 percent for commuter rail, and 1.80 percent for the aggregate for the same

level of gasoline price changes.

 The study by Ky (2016), asked what factors influence a resident's decision to use public

transportation. The study focuses on the effects of gasoline prices to better understand the

relative impact of various ridership determinants. Driving a car becomes more expensive as gas

prices rise. As a result, customers are likely to avoid driving and instead opt for alternatives, such

as public transportation.

Family Monthly Income

According to JPMorgan Chase & Co. (2022), many U.S. consumers must decide whether

to alter their spending patterns or deplete their savings as a result of the most rapid price

increases since the early 1980s. Price hikes, particularly the inflation of gasoline prices, are

hurting a lot of people.

Lower-income families may be more negatively impacted by the recent gas price rises than

higher-income ones.

According to Sarah Bohn et al. (2022), gas prices in California are continuing to rise

despite a high rate of inflation. Before the increase in gas prices, California families—

particularly lower-income families—were already suffering noticeably increased costs in several

budget categories. Lower-income families may be further restricted or struggling due to rising

gas prices.

According to Norhana Abd. Rahim et al. (2019), the beginning of 2007 marked the peak

of volatility for the global price of crude oil. The global economy as a whole has been

significantly impacted by the growing trend in many different economic areas. Additionally,

people are impacted by the global increase in fuel prices. As a result, people's income stopped

being enough to pay for their monthly expenses. It has been discovered that changes in fuel
prices have a considerable impact on household income. Thus, everyone could benefit from this

study because it can help them manage their income and expenses for a better quality of life.

According to Greg Iacurci (2022), All American drivers are being impacted by the

increasing cost of gas, but low-income households suffer the most. This is because, in

comparison to families with higher incomes, low-income households spend a larger portion of

their budgets on transportation expenses and other necessities like food and electricity. To lessen

the financial hit from rising prices, households may decide to drive less.

Source of Income

The study by Moore (2012) talks about how to calculate income and fuel costs as well as

the potential for a comparative and standard European measure. It looks at the issues that arise

when calculating gasoline expenses as a percentage of income and makes the case for a "budget

standard" strategy.

According to Sawhill (2012), Rising gas prices do have a negative impact on consumers

and the economy, and they are particularly bad for lower- and moderate-income households.

Low- and moderate-income families typically spend the majority of their income, leaving them

with a relatively short-term choice between cutting back on other expenditures or taking on more

debt.

According to Folger (2021), The economy may suffer from higher gas prices, which can

affect everything from consumer purchasing to the cost of plane tickets to hiring decisions. Gas

is a crucial component of transportation, which has an influence not only on businesses that

depend on global supply chains for logistics and transportation but also on households because

gas is a cost that is directly related to driving. In the event that increasing petrol prices restrict

discretionary expenditure, the entire economy may be affected as a result.

 Adults with lower incomes are the most affected by rising gas prices and are reducing

their discretionary expenditure. The omicron version of Covid-19 has been eliminated, which has

allowed those with higher incomes to raise their purchases and rejoice (Lorie Konish, 2022).

Family Structure

According to the study of Fatih et al. (2015), depending on the demographics and the

home's income, each household has a unique consumption pattern and habit. Due to structural

issues, the convergence process, income inequality, relative price variability, and the weight

divergence of consumer goods across families are significant issues in developing nations. As a

result, the disparity in household exposure to inflation is more pronounced in emerging

countries. Using the Household Budget Survey (HBS) and TurkStat's consumer price data, the

researchers examine the inflation differences amongst Turkey's various income and demographic

groups over the previous 12 years. Furthermore, the researchers conclude that inflation in poor

households is more sensitive to shocks to food costs, whereas inflation in a wealthy family is

more sensitive to changes in the Turkish currency rate and import prices.

The study of Padilla et al. (2013) combines natural evolution theory principles with fuel

prices and two types of family houses: single-family houses and apartment buildings. The main

finding of the econometric analysis is that an increase in the price of gasoline leads to a decrease

in the rate of single-family house construction. Furthermore, the study confirms the impact of

other variables on the construction rate of single-family houses, such as household income,

population size, public transportation costs, and urban land prices.

The study by Dillon et al. (2015) finds that when gas prices rise by one percent,

households drive 0.171 percent less for non-work trips, whereas work trips are unaffected by

price changes. Furthermore, owners of more fuel-efficient vehicles are more educated and Asian.
Additionally, households in lower-density areas are more likely to have a higher income, to be

older than sixty-five, and to be White; these households own more vehicles per driver.

The study of McLaughlin (2015) investigates whether a change in the price of gasoline,

an exogenous shock to families' disposable income, predicts changes in child maltreatment. Even

after controlling for demographic and other economic variables, the findings of a fixed-effects

regression show that a rise in state-level gas prices is associated with increases in state-level

child maltreatment referral rates. The results found imply that changes in gas prices may have

drastic consequences for children.

Financial

According to Konish (2022), as inflation climbs to historic highs, rising gasoline and

other consumer prices are top Americans’ concerns, as survey finds. Yet more than one-third of

respondents thirty-five percent have no investment account or any investments at all, the study

from eMoney Advisor found, even though investing would be an excellent way to have their

money grow faster than inflation. When asked what their biggest concerns were for 2022, the top

responses included gas prices, with forty-three percent, followed by paying bills, forty-two

percent, and inflation, forty percent. Other worries had retirement savings, with thirty-three

percent of respondents, and taxes, with thirty-two percent.

Oil prices have an impact on domestic prices both directly and indirectly. Oil is widely

recognized as a critical and valuable input for manufacturing, heating, and transportation costs

based on the distribution cost of goods and services. A significant increase in the price of oil can

directly increase the cost of production and other business activities that rely on oil and its

derivatives. As a result, the final prices of consumer goods and services change. The price of
chemicals and transportation services will be affected by an increase in oil prices. One-time

changes in oil prices (direct or indirect) will only cause a price increase but will not result in

long-term inflationary effects (ECB, 2010). The indirect effects are determined by how wage and

price setters respond to a price shock. Income losses caused by past inflation shocks affect

economic agents' inflation rate expectations, resulting in a higher price and wage-setting

behavior (Bari et al., 2020).

According to (Inegbedion et al., 2020), the Nigerian government has been in deregulation

policy in the downstream petroleum sector, which necessitates the withdrawal of petroleum

subsidies. Withdrawal of petroleum subsidies frequently stimulates increases in the price of

petroleum products and, thus increases in transportation fees and commodity prices.

According to (Killian, as cited in Fueki et al., 2016), the empirical studies that followed

(Killian as mentioned in Fueki et al., 2016) provide evidence that oil demand shocks associated

with the global business cycle explain a significant component of oil price fluctuations. In

contrast, oil supply shocks occasionally play a three non-negligible role. Aside from demand and

supply factors, financial factors in oil futures trading provide an additional transmission channel

for expectations of oil prices. In the study of (Basak et al. as cited in Fueki et al., 2016), financial

investor activity in the oil futures market amplifies previously realized and expected shocks.

According to (Killian, as cited in Fueki et al., 2016), the quantitative significance of this

amplification mechanism is an open question.

Society

The housing collapse in the United States in 2007 is widely blamed for triggering a

financial crisis that spread to the real economy, causing a severe and prolonged downturn. The

researchers develop a model to investigate the role of gasoline price shocks in precipitating the
housing market collapse and identifies a new channel through which energy price shocks affect

the financial market and the macroeconomic environment (Wu et al., 2019).

Higher fuel prices increase the value of real estate with shorter commutes and easier

access to driving, in compare to homes that are more reliant on driving. Every additional mile

driven reduces home values by 0.143% relative to counterfactual markets, or $5,200 for the

average home and commute (Blake, 2019).

According to the report of Roxas-Chua (2022), Gas price increases have impacted not

only oil companies and consumers but also small businesses. Shipping goods to customers is

becoming increasingly expensive for sellers. Small businesses are already struggling as a result

of the pandemic's disruptions. Higher shipping costs have forced some firms to raise their prices.

Environmental

The study of many countries is attempting to reduce gasoline consumption from

passenger vehicles to reduce their reliance on petroleum imports and reduce air pollution.

Passenger vehicles account for sixteen percent of total greenhouse gas emissions in the United

States (US EPA p. 2–28). Furthermore, they are a significant source of traditional pollutants such

as carbon monoxide, ozone, and fine particulates. These pollutants can be harmful that causes

respiratory, heart disease, and premature death. They may be especially effective in vulnerable

populations such as the elderly and young children. Indeed, research has shown that in-utero and

childhood exposure to these gases has the potential to affect a variety of health outcomes in the

short and long run (Currie et al., 2014)

In the study by Kumar et al. (2021), in response to the government's decision to remove

some gasoline subsidies in the Kingdom of Bahrain in 2016 and then again in 2018, the current

study investigated the impact of increased gasoline prices on consumers' choice of private
vehicle parameters. The results show that as gasoline prices rise, vehicle weight and engine

displacement decrease significantly while fuel efficiency increases significantly. The use of a

dummy variable regression model reveals that fuel prices and vehicle parameters have a

significant impact on CO2 emissions as well as the environment.

Gasoline price increases in Russia and Iran, while price decreases in the United States,

Russia, Japan, and Canada reduce carbon emissions in the long run. Asymmetric findings also

suggest that changes in oil prices affect carbon emissions in China, the United States, India,

Russia, Japan, Germany, South Korea, Iran, Saudi Arabia, and Canada in the short and long run.

However, in environmental economics policies, the sign and magnitude of positive and negative

oil price shocks are more important. As a result, more taxation on fossil fuels and clean energy

subsidies are propose for the top carbon-emitting economies based on sign and magnitude (Ullah

et al., 2020)

Gasoline is a toxic and highly flammable liquid. The vapors given off when gasoline

evaporates and the substances produced when gasoline is set on fire (carbon monoxide, nitrogen

oxides, particulate matter, and unburned hydrocarbons) contribute to air pollution. Burning

gasoline also produces carbon dioxide, a greenhouse gas. (U.S. Energy Information

Administration, 2021)

Consumers

The impact of shifting oil prices on Turkey's consumer inflation is examined in this

study. The researcher contrasts how changes in the cost of gasoline and crude oil affect consumer

pricing. The results show that changes in the price of fuel and oil have asymmetric impacts on

inflation in the short term. Long-term consumer inflation variations associated with rising oil

prices are explained by both theories (Bari and Adali, 2020).

 According to Moore (2022), Higher gas costs should hinder consumer spending and

economic growth since they will logically drain consumers' wallets. Though the precise amount

is not immediately clear. It is likely to be considered if the current surge in energy prices is

continued, according to scholarly research on the historical influence in this area.

This year, the cost of energy has played a significant role in raising inflation. The cost of

gasoline in particular has come to represent the burden that inflation places on consumers, and

the direction that prices take from here will have an impact on consumer spending, Fed policy,

and stock market performance (Mike Minter, 2022).

Consumer confidence fell as gas costs rose, according to a 2020 Gallup research.

Intriguingly, though, it was also shown that when petrol costs were higher, people's perceptions

of the status of the economy as a whole were worse (DTN Team, 2022).

Inflation

In the study by Lioudis (2022), crude oil is a significant economic input, an increase in

oil prices affects inflation, which tracks the overall rate of price growth throughout the economy.

The effects of oil price shocks on wage and consumer price inflation differ depending on

the structural or status of an economy. Oil price shocks have similar effects on salaries and core

inflation as they do on inflation expectations (Chikako Baba and Jaewoo Lee, 2022).

The rate gains from the rise in crude oil prices. The cost of crude oil and economic

expansion, however, are inversely connected to inflation. The two elements of the crude oil price

were divided into positive and negative partial sums of oil a pricing system based on an

asymmetric and nonlinear autoregressive distribution lag (Ankita Sarmah and Debi Prasad Bal,

2016).
 Inflation and increased oil prices have a statistically significant relationship. Prices of

things that depend on oil also rise when oil prices do. Costs may rise, for instance, for products

made of petroleum-based materials like plastic or for goods like fruits and vegetables that are

typically brought to markets by trains and trucks with gasoline- or diesel-powered engines

(Milissa Pistilli, 2022).

Current Events

According to Mohd Shahidan Shaari(2013), the majority of earlier studies claimed that

rising gas prices were to blame for several economic issues, including the rise in the consumer

price index, a drop in consumption, an increase in the unemployment rate, and others. In this

study, the effect of the rising oil price on unemployment and job sectors is being investigated.

The data on the price of gasoline, the unemployment rate, employment, and industry are gathered

and analyzed. The analysis's findings demonstrated that the rise in the price of oil was

responsible for the greater unemployment rate in any sector.

College students, especially those with long commutes, are voicing concerns about rising

gas prices, and the cost of traveling to their campuses, internships, and jobs. Gas prices in the

United States have increased as a result of inflation and the impact of Russia's invasion of

Ukraine, according to AAA.

Some students aren't just concerned with how they will pay for transportation to and from

campus. It describes the impact that rising gas prices are having on his career exploration. But

some colleges are using innovative methods to ease the financial burden on students to pay for

their expenses and necessities (Georgetown University, 2022).

Most Americans are prepared to travel after spending more than two years primarily at

home because of the pandemic, according to a Morning Consult report. However, worse than
worries about Covid are that, the inflation and record-breaking petrol prices for American

travelers. A survey in this study indicates that 69% of Americans intend to vacation this summer,

but that their main worry has shifted from COVID to rising gas prices and inflation (Dickler,

2022).

Long-term Incentives

The study by Weldon et al. (2018) provides a comparative analysis of the costs of

ownership of EVs and similar internal combustion engine vehicles (ICEVs) under various cost

scenarios, focusing on the plethora of options and variables available to EV users. Moreover,

factors include the availability of EV incentives, the potential effects of battery replacement,

long-term vehicle ownership costs, and the costs of electric fleet vehicles.

In the study of Zhang et al. (2017), rapid technological advancement, the establishment of

charging facilities, subsidies, and tax breaks, EVs will account for seventy percent of annual new

vehicle sales and nearly half of vehicle stock by 2030, resulting in the substitution of almost 1

million tons of gasoline with 3.2 billion kWh electricity in 2030 and a reduction of 0.6 million

tons of CO2 emissions in 2030. The top three drivers are technological advancement, charging

conditions, and fuel prices. Subsidies have significance in the early stages, but tax and supply-

side policies can be good long-term incentives.

According to Miller (2022), as gas prices in the United States reach record highs, many

low- and middle-income workers found that wages no longer cover basic living expenses. Some

say they may not be able to afford to drive to work for much longer. While taking public

transportation or biking may be an option for some, driving to work is the only practical option

for others.
 The study of Batubara et al. (2015) looks into the field's viability using a variety of

financial incentives. First, the gas supply-demand relationship was investigated until the year

2040. The sector was devised using high CO2 gas separation technology to produce gas at 1300

MMSCFD in 2023, 2600 MMSCFD in 2031, and 3900 MMSCFD in 2039, based on the

analysis. Finally, following Indonesia's production-sharing contract scheme, the economic

feasibility was assessed using cash flow analysis. The findings show that the supply-demand gap

is widening, indicating that development is urgently needed.

Economic Growth

According to Meyer (2018), In terms of cost-push inflation, the fuel energy sector has a

crucial impact on price stability and production costs. Over the last decade, this sector has been

volatile, affecting global economic stability. South Africa, a fuel importer, has seen fuel prices

rise at an alarming rate of twenty-one since the beginning of 2018, causing inflationary pressures

in a low-growth environment.

The study of Liaqat et al. (2022), provided new insight into the relationship between oil

price inflation and economic growth by analyzing the impact of oil prices on economic growth.

This study's primary goal is to determine whether oil prices are pro-growth or anti-growth. From

1972 to 2020, the statistics of the core and control variables were utilized to establish empirical

proof for the affiliation. As a result, while oil price inflation in Pakistan has no significant

beneficial effect on economic growth in the long or short run, it does raise the overall price level

in the economy.

According to Hassen and Meyer (2020), Over the last decade, the South African

economy has experienced the phenomenon of high inflation coupled with low economic growth.

Furthermore, the relatively high limits of rising prices can be accredited by rising costs rather
than an increase in consumer demand. Fuel or petrol prices are one of the factors contributing to

rising costs and inflation in South Africa. The ongoing rise in petrol prices over the last decade

has had a significant and negative impact on inflation and economic growth in South Africa in

the long run.

The study of Ocheni (2015), assesses the impact of the fuel price increase on the Nigerian

economy. The recent increases in fuel prices have had a significant impact on Nigeria's economic

growth. Also, the Nigerian economy has been discovered static due to the effect of rising fuel

prices on purchasing power.

Investments

According to one study, the top three concerns for 2022 are gas prices (forty-three

percent) paying bills (forty-two percent), and inflation (forty percent). Other concerns included

retirement savings (thirty-three percent of respondents) and taxes (thirty-two percent of

respondents). This survey demonstrates that there is a great deal of financial anxiety caused by

inflation, market volatility, and the uncertainty that has resulted from the pandemic and the

impact that it has had on everyone in their daily lives (Lorie Konish, 2022).

Kevin Markarian (2022), reports that the US recently announced plans to stop purchasing

Russian gas and oil. This might not seem to have much to do with real estate at first glance. The

impact might be significant, but not for the reasons you might think. Housing costs are likely to

continue to rise nationwide, regardless of interest rates. The price of building materials,

household goods, and, by extension, home-building services will continue to go up as gas and oil

prices rise.

As stated in American Century Investment Services, Inc. (2022), due to the higher prices,

the rise in gas prices may serve as a reminder of the energy crisis of the 1970s. Given that high
energy prices have such a large impact on so many different economic sectors, it makes it fair to

wonder how rising costs may ultimately affect stock market performance. History suggests that

stock values may decline if rising gas costs and the ensuing inflation actually cause the economy

to enter a recession. It can be unsettling to see your gas and heating prices climb while the

market is volatile. Maintaining discipline and refraining from reacting to momentary market

fluctuations is one method to cope with stress.

According to Mallika Mitra (2022), rising oil prices have given consumers more reasons

to be concerned than just high gas prices. What does the rise in oil prices mean for your

investment portfolio? Investors were concerned about the impact of the Ukraine conflict on the

global economy and inflation. In recent weeks, investors have witnessed volatile financial

markets as a result of the Russia-Ukraine crisis. Between what sanctions against Russia might

mean for inflation and how the Federal Reserve will react to the news, investors have a lot to

think about when deciding what, if anything, to do to protect their portfolios.

Alternatives

In the study of Benvenutti et al. (2017), Alternative fuel vehicles (AFV) are a promising

option for reducing greenhouse gas emissions in the transportation sector and, in turn,

contributing to a more sustainable society. Some new policies have been implemented as part of

the Brazilian government's current commitments to international agreements, in terms of

emissions reductions by 2030, to incentivize the spread of AFV in the country.

In the study of Ghadikolaei et al. (2021), Despite advancements in alternative fuel (AF)

production technologies and the need to use more AFs in motor vehicles to reduce air pollution

and greenhouse gas emissions, the number of alternative fuel vehicles (AFVs) in the global

transportation sector has not increased significantly in recent years and even soon with
projections to 2050. The higher cost of AFVs compared to gasoline and diesel vehicle may be

one of the main barriers to widespread adoption.

In the study of Brito et al. (2020), ethanol is promoted as an alternative fuel to gasoline

by the Brazilian Alcohol Program. Policymakers are interested in learning how the relative fuel

prices coefficient is significant for gasoline-powered and alternative-fuel vehicles (AFVs).

Within the Brazilian market, the researchers utilize overall market models to estimate the fuel

price market share price curve, both through cross effects for each technology.

According to Li and Loo (2014), the transportation sector is one of the primary sources of

significant energy consumption and carbon emissions in urban areas. Electricity (used in hybrid,

electric, and fuel-cell vehicles), biofuels, gaseous fuels from other sources (hydrogen, natural

gas, and liquefied petroleum gas [LPG]), alcohols, and ethers are examples of alternative and

transitional energy sources. Alternative and transitional energy sources, which are renewable and

have a lower environmental impact than diesel and gasoline, can be used to promote the

development of sustainable transportation systems.

Statement of the Problem

This study aims to determine the problems encountered with the gasoline rate inflation

among the Senior High school in Urdaneta City National High School (UCNHS) for the school

year 2022-2023.

Specifically, it seeks to answer the following:

1. What is the profile of the respondents in terms of:

a. age;

b. sex;
 c. grade level;

d. area of residence;

e. mode of transportation;

f. family monthly income;

g. source of income; and

h. family structure?

2. What is the extent of the problems encountered along the gasoline rate inflation along with:

a. financial;

b. society;

c. environmental;

d. consumer;

e. inflation;

f. current events;

g. long-term incentives;

h. economic growth;

i. investments; and

j. alternatives?

3. Is there a significant relationship between mode of transportation and the extent of the

problems encountered along the gasoline rate inflation?

Scope and Delimitation

 This study will focus on the problems encountered on the gasoline rate inflation in

Urdaneta City. The study's respondents are the students of Urdaneta City National High School

in the current school year 2022-2023.

This study also focused on the variables: the demographic profile of the respondent in

terms of; age, sex, address, grade level, and mode of transportation. Second is the problems

encountered along with; financial, social, environmental, economic, and the availability of

supply. As stated, the variables that are not mentioned above delimit the study and to be used by

future researchers.

Significance of the Study

Gasoline plays a big role inbyhe country, the increase in its price makes a big impact on

the people. The researchers conducted this study to determine the problems encountered on

gasoline rate inflation. Thus, the findings will be beneficial to the following:

Students. This study will be beneficial to the students, for the reason that this study will

tackle the problems encountered on gasoline rate inflation, it will help the students to better

understand the impact of it. Also, this will help the students to estimate the cost of products and

services, especially the educational expenses as everything increases in price.

 Citizens. This study will benefit the citizens because the citizens are primary affected as

the inflation rate of gasoline happens. This study will help the citizens to make good decisions

about budgeting their needs and expenses, also it will help the citizens to drive less or spend less

on oil-derived products whose prices rise with higher oil prices.

Economy. This study will help the economy to decrease the amount of money to spend

on other products and services. As gasoline prices decline, a rise in the economy is possible for

the reason that inflation rate gasoline has an impact on the economy rate.

Entrepreneurs. This study will benefit the entrepreneurs for the reason that as gasoline

prices increase, the revenue of entrepreneurs also increases.

Future Researchers. This study would benefit the future research as this study will give

the insight to be a guide to a new study with the same topic.

Definition of Terms

For a better understanding of this study, the following terms are defined in the context of

this study.

Gasoline. A volatile flammable liquid hydrocarbon mixture used as a fuel, especially for

internal combustion engines and usually blended from several products of natural gas and

petroleum. In this study gasoline is the focus of the study.

Inflation. A continuing rise in the general price level is usually attributed to an increase

in the volume of money and credit relative to available goods and services. In this study,

inflation is the main topic.

Financial. Relating to finances of an individual or organization. This study advises how

to set aside money for necessities.

 Sex.  Is usually categorized as female or male. In this study sex helps to investigate who

or which sex is more affected by the increase in fuel prices.

Mode of Transportation. It refers to the way in which passengers and/or goods can be

transported. In this study mode of transportation was used to investigate the relations between oil

prices and the transport sector.

CHAPTER 2:
METHODOLOGY
This chapter feature in detail the methodology of the study. It consists of research design,
collection of data, instrumentation & validation, and tools for analysis.
Research Design
The method used in this study was a descriptive research design. The descriptive research
strategy can study one or more variables using inclusive research techniques. Contrary to
experimental research, the researcher observes and measures the variables in this study. Using
descriptive research design, the researchers can effectively design a pre-structured questionnaire
with both open-ended and closed-ended questions. Further, this method includes data collecting
to ascertain the problems encountered in gasoline rate inflation among students.
Additionally, data collecting is required for this research technique to test a hypothesis or
address questions regarding the current state of the issue. In this research method, the
information gathered from responses can be statistically presented for simple interpretation by
report users. Using descriptive design enables the researchers to measure the results rather than
explore the outcome.
Collection of Data
 The researchers used a survey questionnaire to gather the needed data. According to
Bhandari (2021), a questionnaire is a list of questions or items used to gather data from
respondents about their attitudes, experiences, or opinions. Questionnaires were used to collect
quantitative and qualitative information. The researchers used a survey questionnaire to collect
the necessary information, which is a suitable method to use.
The respondents of the study were the senior high school students of Urdaneta City
National High School. There are 150 respondents from grade 11 and grade 12 students. The
respondents were randomly chosen using stratified random sampling. In stratified sampling,
researchers divide the subject into subgroups called strata based on characteristics that share
(e.g., gender, age, and area of residence).
Instrumentation & Validation
The researchers used a survey questionnaire as the main instrument to gather the
necessary information needed regarding the problems encountered in gasoline rate inflation
among students in Urdaneta City National High School. Survey questionnaire is a technique for
gathering statistical information about the attributes, attitudes, or actions of a population by a
structured set of questions.
The survey questionnaire contained two parts. In part one which is the demographic
profile of the student-respondent, consists of the questions of the following variables; age; sex;
grade level; area of residence; mode of transportation; family monthly income; source of income;
and family structure. As for the part two which states the "extent of the problems encountered in
gasoline rate inflation among students" includes the questions of the following variable;
financial; scoiety; environmental; consmer; inflation; current events; long-term incentives;
economic growth; investments; and alternatives. Each variable contain ten statements, to assure
the respondents, the questions provided by researchers is easily understood as well as the
instructions given. To properly assess the respondent's answer, the researchers provided a scale
column to help the respondents answer the questions in a given time. Answering the survey
questionnaire will not exceed in one hour, and will take up only minutes.
Tools for Data Analysis
Appropriate statistical tools were used to come up with the appropriate interpretation of
data gathered in the study.
The first problem determined the respondents’ profile using frequency distribution and
percentage to present the data, and the percentage formula is given below:
(P) Percentage = ( (f) Value ⁄ (n) Total Value) × 100
Where:
P= percentage equivalent of each bracket
F= number of respondents in each bracket
n= total number of respondents; sample size
 The second problem was analyzed using the weighted mean formula to compute for the
weight of the responses in the questionnaire assigned by the respondents during the actual data
procedure. The formula for the weighted mean is as follows:

Where:
W = weighted average
n = number of terms to be averaged
Wi = weights applied to x values
Xi = data values to be averaged

Seven-Point Likert Scale for the Extent of Problems Encountered in Gasoline Rate
Inflation among Students
Mean Range Numerical Value Descriptive Equivalent
To >6.50 to 7.00 7
>5.50 to 6.50 6 Agree
>4.50 to 5.50 5 Somewhat Agree
>3.50 to 4.50 4 Neither Agree nor Disagree
>2.50 to 3.50 3 Somewhat Disagree
>1.50 to 2.50 2 Disagree
1.00 to 1.50 1 Strongly Disagree
answer the third problem, Paired T-Test at 0.5 level of significance was utilize to determine the
significant relationship between the two variables.

Where:
d = the sum of the relationship

In order to determine the exact number of respondents that will be

needed for the study, given the formula below, Slovin's Formula with a 2%
margin of error and a confidence level of 95% to determine how accurate the
margin of error is.
n = N / (1+Ne2)
whereas:
n = no. of samples
N = total population
e = error margin / margin of error

CHAPTER 3
DISCUSSION OF FINDINGS

Table 1
Profile of the Respondents
n=340
Profile Variables Frequency Percentage
Age
15-16 107 31.47
17-182 218 64.12
19-20 14 4.12
21-25 1 0.30
Sex
Male 128 37.65
Female 212 62.35
Grade Level
Grade 11 193 56.76
Grade 12 147 43.24
Area of Residence
Within Urdaneta 283 83.24
Outside Urdaneta 57 16.76
Mode of Transportation
Tricycle 227 66.76
 Bus 9 2.65
Jeep 15 4.41
Motor 66 19.41
Bike 5 1.47
Others 18 5.29
Family Monthly Income
below – 10,957 150 44.12
10,957 - 21,914 72 21.18
21,914 - 43,828 40 11.76
48,828 - 76,669 41 12.06
76,669 - 131,484 20 5.88
131,483 - 219,140 6 1.76
219,140 - above 11 3.24
Source of Income
Employment 181 53.24
Business 93 27.35
Pension 21 6.18
Others 45 13.24
Family Structure
Living with parents 283 83.24
Living with relatives 15 4.41
Living with guardian 21 6.18
Living with Grandparents 21 6.18

Table shows the profile of the respondents. Most of respondents are ages 17-18 years old with
64%, and 64% of them are female, while 37% are male. In terms of their area of residence, mostly
responses within urdaneta (83%), while others are outside urdaneta (17%). Tricycle have the highest
frequency (67%) among the mode of transportation. Also the highest frequency count on below-10,957
under family monthly income (44%), and mostly are employed (53%) as their source of income.
Moreover, on the response in family structure, most of the respondents answered living with parents with
83%.

Table 2.1
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF FINANCIAL
n=340
WM DE
Sort my bills based on its due date and budget it monthly 5.34 Somewhat
Agree
Include transportation fee or gasoline fee in my daily expenses 5.26 Somewhat
Agree
 Spend wisely on products and beware of the increase on price value as demand gets 5.50 Agree
higher
Aware of the increase in fare as gasoline price increase 5.70 Agree

Feel dismayed as gasoline prices increase because an increase in fare will also occur. 5.71 Agree

Prepare my extra money as transportation fare increases 5.61 Agree

Save up money for fare when I was fetch at school 5.64 Agree

Pay transportation fare based on the fare policy from the municipality 5.55 Agree

Experience over-pricing of fare at a transportation vehicle 5.89 Agree

Preferred commuting instead of being fetched by my parents 4.79 Somewhat

Agree
AWM 5.50 Somewhat
Mean Range Descriptive Equivalent Agree
>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 Agree
>4.50 to 5.50 Somewhat Agree
>3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree

Table 2.1 shows that most of the students feel dismayed as gasoline prices increase because an
increase in fare will also occur, have the highest weighted mean of 5.71, and preferred commuting instead
of being fetched by my parents got the lowest weighted mean of 4.79. Along the financial, it shows that
the average weighted mean is 5.50 with the descriptive equivalent of Somewhat Agree.
In the study of Bari et. al (2020) stated that significant increase in the price of oil can directly
increase the cost of production and other business activities that rely on oil and its derivatives. The study
of Severen et al. (2022), estimates that youths starting to drive now—ages 15 to 18—will push less
throughout their adult lives than cohorts before or after them due to the rising cost of gas. They will be
more inclined to use fuel-efficient vehicles and take public transportation to work.

Table 2.2
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF SOCIETY
n=340
WM DE
Aware that gas inflation affects a lot of people's lives by generally raising prices in
society.
Can say that the increase in gasoline prices is one of society's main issues
Believe that the price of gas fluctuates naturally throughout people's life
 Don't think that the increase in gas prices has much of an effect on people
Aware that individuals can do something to lessen the effects of gas price inflation
Believe that gas price hike is unavoidable because of the way modern society works
Aware that inflation has significantly impacted people's income.
Believe that students are also impacted by the increase in gasoline prices struggle to
make ends meet because of the inflation rate
Struggle to make ends meet because of the inflation rate
Know that the pandemic is still ongoing, many people find it challenging to keep up with
the price increases
AWM Mean Range Descriptive Equivalent
>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 Agree
>4.50 to 5.50 Somewhat Agree
>3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree

Table 2.2 shows that most of the students are aware on the effects of gasoline inflation on
people's lives by generally increasing the prices in society, has the highest weighted mean of 6.07. While
"Don't think that the increase in gas prices has much of an effect on people", got the lowest weighted
mean of 4.48. Along the society, it shows that the average weighted mean is 5.65 (Agree).
According to the report of Roxas-Chua (2022), Gas price increases have impacted not only oil
companies and consumers but also small businesses. As stated in Foley and Lardner LLP (2022), despite
all the uncertainties, one thing is clear: fuel prices impact much more than the simple price consumers pay
at the pump. Rising petroleum costs lead to corresponding increases across a variety of sectors, and can
affect so many other industries and people.

Table 2.3
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF ENVIRONMENTAL
n=340
WM DE
 AWM Mean Range Descriptive Equivalent
>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 In the
Agree
table 2.3
above >4.50 to 5.50 Somewhat Agree shows
that >3.50 to 4.50 Neither Agree Nor Disagree most
of the >2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
respondents answered “Aware that exposure to pollutants may result in several health issues.” with a
highest weighted mean of 5.97. Meanwhile “Feel "at home and safe" in my beloved environment.” got the
lowest weighted mean of 5.53. Along the responsible, it shows that the average weighted mean is 5.82
with the descriptive equivalent of Agree.
The study of many countries is attempting to reduce gasoline consumption from passenger
vehicles to reduce their reliance on petroleum imports and reduce air pollution. Passenger vehicles
account for 16% of total greenhouse gas emissions in the United States (US EPA p. 2–28). In the study by
Kumar et al., (2021), the use of a dummy variable regression model reveals that fuel prices and vehicle
parameters have a significant impact on CO 2 emissions as well as the environment.

Table 2.4
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF CONSUMER
n=340
WM DE

AWM Mean Range Descriptive Equivalent

>6.50 to 7.00 As
Strongly Agree
shown in the
table >5.50 to 6.50 Agree 2.4
above, >4.50 to 5.50 Somewhat Agree most
>3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
students experience the effect of gasoline rate inflation as it have the highest weighted mean of 5.80.
While "Usually watch news regarding the increase of gasoline prices" have the lowest weighted mean of
5.29. Along the consumer, it shows that the descriptive equivalent is Agree as it have the average
weighted mean of 5.62.
According to Morrissey (2020), The teenagers are now struggling with high gas prices. In the
study of Turrentine et. al (2007), found no household that analyzed their fuel costs in a systematic way in
their automobile or gasoline purchases. Almost none of these households track gasoline costs over time or
consider them explicitly in household budgets.
Table 2.5
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF INFLATION
n=340
WM DE

AWM Mean Range Descriptive Equivalent

>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 As
Agree
shown in the
table >4.50 to 5.50 Somewhat Agree 2.5
most of >3.50 to 4.50 Neither Agree Nor Disagree the
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
respondents are aware that inflation is a general increase in prices in one economy that has an impact on
many people's lives (5.95), has the highest weighted mean. And by being aware of the fact that taking action
can defend oneself from inflation, got the lowest weighted mean of 5.5. Along the inflation, it shows that the
average weighted mean is 5.74 with descriptive equivalent of Agree.
According to Solomon A. Anafo et.al (2014), inflation did highly affect the living standard of the
people. It was revealed that the standard of living of the people worsen form year to year with 2013 been the
lowest due to the high inflation. According to Bankrate (2022), consumer prices increased 7.9 percent in
February 2022 compared to the prior year. And with prices sharply on the rise, there is a way on how to beat
inflation; Invest in good businesses with low capital needs, Invest in yourself and be the best at what you do,
and Limit your wants. Action is a must.
 Table 2.6
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF CURRENT EVENTS
n=340
WM DE

AWM Mean Range Descriptive Equivalent

>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 Table
Agree
2.6 shows
that >4.50 to 5.50 Somewhat Agree the
>3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
respondents usually believe that gas price increases have an impact on current events (6.12), has the highest
weighted mean, and Involve myself when discussing preventions on current issues of our country (5.51), has
the lowest weighted mean, it shows that the average weighted mean is 5.75 (Agree).
Gasoline is an economic issue with political, social, cultural, and environmental implications, and
Iran's pricing strategy has never been straightforward (Taheri et. al, as cited in Saryazdi et. al, 2022). In the
study of Mbah and Wasim (2022), the rapid rise in oil, natural gas, and food prices just a few days into this
crisis, which is already wreaking havoc on the majority of global economies, inflation is quickly growing.
Household consumption will likely be impacted, and there will likely be increased uncertainty, skyrocketing
power prices, a drop in investment owing to political risk, and barriers to economic progress.

Table 2.7
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF LONG-TERM INCENTIVES
n=340
WM DE
 AWM Mean Range Descriptive Equivalent
>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 The
Agree
table 2.7
above >4.50 to 5.50 Somewhat Agree shows
that >3.50 to 4.50 Neither Agree Nor Disagree "Know
that if I >2.50 to 3.50 walk
Somewhat Disagree
instead of
taking
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
transportation, I can save up money" got the highest weighted mean of 6.00, and least of students are aware
that incentives benefit during inflation can sometimes affect their performance as a student as it got the
lowest weighted mean of 5.57. Along the long-term incentives, it shows that the average weighted mean is
5.72. with the descriptive equivalent of Agree.
According to Miller (2022), as gas prices in the United States reach record highs, many low- and
middle-income workers found that wages no longer cover basic living expenses. Some say they may not be
able to afford to drive to work for much longer. Davis (2020), When asked about gas prices, Redding said,
"They're too high for me, but I know I'm going to have to pay the price." As a result, many students limited
the social lives to save money, trying to strike a balance that allows them to have experiences while also
being aware of their reality.
Table 2.8
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF ECONOMIC GROWTH
n=340
WM DE
 AWM Mean Range Descriptive Equivalent
>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 Table
Agree
2.8 shows
that >4.50 to 5.50 Somewhat Agree mostly
of the >3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
respondents answered "Notice that we are all currently experiencing the immediate impact of the pump
price of gasoline in our lives.", and has the highest weighted mean of 5.72. On the other hand, "Regret for not
acting responsibly to help and support our economy.", has the lowest weighted mean of 5.47. Along with
economic growth, it shows that the average weighted mean is 5.59 (Agree).
The study by Thompson (2017), Americans have enjoyed low gas prices in recent years. And due to
the rising gas prices there could have a significant impact on the American's way of living and it will be
affected. As gas prices continue to increase, the citizens of America may have to change their drive, spend,
and live. According to Mark Carney (2021), foundational change is required if we are to build an economy and
society based not on market values but on human values. When we think about what we, as individuals
especially in the midst of inflation, values most highly, we might list fairness, health, the protection of our
rights, economic security from poverty, the preservation of natural diversity, resources, and beauty.

Table 2.9
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF INVESTMENTS
n=340
WM DE

AWM Mean Range Descriptive Equivalent

>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 As
Agree
shown in table
2.9 >4.50 to 5.50 Somewhat Agree above,
>3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
that most of the respondents answered “Know that gas is included in the necessities for everyday life of an
individual due to our vehicles, so as the price increases it affects our budgets.” has the highest weighted
mean of 5.49, and “Less worried about the inflation of petrol since I want to get a consistent income from my
assets.” has the lowest weighted mean of 5.08. Along the responsible, it shows that the average weighted
mean is 5.35 with the descriptive equivalent of Agree.
According to the report of Roxas-Chua (2022), Gas price increases have impacted not only oil
companies and consumers but also small businesses. Shipping goods to customers is becoming increasingly
expensive for sellers. In the study of (Bari et al., 2020) stated that significant increase in the price of oil can
directly increase the cost of production and other business activities that rely on oil and its derivatives. As a
result, the final prices of consumer goods and services change.

Table 2.10
EXTENT OF PROBLEMS ENCOUNTERED IN GASOLINE RATE INFLATION AMONG
STUDENTS IN TERMS OF ALTERNATIVES
n=340
WM DE

AWM Mean Range Descriptive Equivalent

>6.50 to 7.00 Strongly Agree
>5.50 to 6.50 Table
Agree
2.10 shows
that >4.50 to 5.50 Somewhat Agree most of
the >3.50 to 4.50 Neither Agree Nor Disagree
>2.50 to 3.50 Somewhat Disagree
>1.50 to 2.50 Disagree
1.00 to 1.50 Strongly Disgree
students are aware of the possible effect of alternatives to gasoline as it have the highest weighted mean of
5.62. While least of the students know other alternatives for gasoline in vehicles except the electric powered
vehicle as it got the lowest weighted mean of 5.17. Along the Alternatives, it shows that the average
weighted mean is 4.42 with the descriptive equivalent of Somewhat Agree.
In the study of Ghadikolaei et al. (2021), The higher cost of AFVs (Alternative Fuel Vehicle) compared
to gasoline and diesel vehicle may be one of the main barriers to widespread adoption. In the study of
Kennedy et. al (2002), claim that students learned the advantages of alternative fuel vehicles.