Republic of the Philippines

Department of Education
Region IX, Zamboanga Peninsula
Division of Zamboanga City
MARIA CLARA L. LOBREGAT NATIONAL HIGHSCHOOL-SENIOR HIGH
Divisoria, Zamboanga City

PRACTICAL RESEARCH

The Effects of Increasing Vehicle Fares in Budgeting of Allowances among Grade 12 Students of
Maria Clara L. Lobregat National High School

In partial fulfilment of the requirements in Practical Research III of Accountancy Business and
Management Strand.

Presented by
Grade 12- Olave (ABM)
Abdurahman, Ameera
Antonio, Honey Mae
Dela Cruz, Rea Mae
Du, Jim Sander T.
Guelos, Nathaniel V.
Vailoces, Prenzel Joy A.

LESLIE GRACE ESPINOSA-DOLLETE

PRACTICAL RESEARCH III TEACHER

2022-2023

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 TABLE OF CONTENTS

PAGES

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study……………………………………………………….
………....3
1.2 Statement of the Problem…………….………………………………………………..
….5
1.2.1 Research Questions………………….……………………………………...
…….5
1.2.2 Hypothesis………………………………..…………………………....................5
1.3 Conceptual Framework……………………….
………………………..............................5
1.4 Significance of the Study……………………………….…….………………………..…6
1.5 Scope and Delimitation … ………………………………..…………………………..
….7
1.6 Definition of Terms ……………………………………………………...
……………….7

CHAPTER TWO: REVIEW OF RELATED STUDIES

2.1 International
Studies………………………………………………………………...........8

2.2 Local Studies………………………………………………………………………..…...10

CHAPTER THREE: METHODOLOGY

3.1 Research Design ………………………………………………………...…………..…...11

3.2 Population and Sampling……………………………….………………..…….….……..11
3.3 Locale of the Study………………………………………………………….……….…..12
3.4 Research Instruments……………………………………………………………..……...12
3.5 Data Gathering Procedure………………………………………………..…..…………..13
3.6 Statistical Tool…………………………………………………………….......................13

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3.7 Ethical Consideration…………………………………………………………….………13

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 CHAPTER I.

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Inflation is the rate of increase in prices over a given period of time. (Fernando,
2022) These days, prices of any product and services are rising as a result of inflation. The fuel
prices utilized to power public transportation is also increasing. A fare is the fee paid by the
passenger for use of a public transport system, rail, bus, taxi, etc. A transit vehicle's fare matrix
structure is the system in place to decide how much each individual passenger must pay at any
particular moment. Fares are essential to the functioning of public transportation because they
serve as the main source of income for operators.

According to a unanimous vote held by NYC Taxi and limousine Commission

the cost of a New York City ride is expected to increase by nearly 23% by the end of 2022,
marking the first taxi fare increase in a decade (Sylla Z., CNN, 2022). The yellow taxi and street
hail livery ("SHL") industry in New York City has undergone changes, most notably as a result
of the rise of For Hire Vehicles on the road, such as Uber and Lyft, according to commission
members, who stated that the fare increase is a part of an effort to “put more money in [taxi]
drivers' pockets”. (Perry, 2022)

The post-pandemic state has become one of the factors that an operators can
overcharge the fare of the passenger. According to Inquirer Net, it was reported that a taxi driver
took advantage of a Korean tourist charging for a three times higher than the original amount of
a taxi fare. After the incident, the operators of public utility vehicles (PUVs) has previously been
warned by the Land Transportation Franchising and Regulatory Board (LTFRB) of severe
repercussions if they are caught to be overcharging fares. (Mendoza, 2022)

Saying the fare hike would be an added burden amid the increasing prices of some
commodities, some commuters and drivers of public utility vehicles (PUVs) worry about the
impact of higher fares on the riding public. While some drivers received it as good news as it
would let them bring home higher income for their families at the end of the day, some

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commuters said it is not fair to increase fares at this time. Meanwhile, Land Transportation
Franchising and Regulatory Board (LTFRB) 7 Director Eduardo Montealto Jr. has clarified that
the fare increase for PUVs, particularly the P1 fare for traditional and modernized jeepneys, is
already permanent and no longer provisional. Montealto told SunStar Cebu that there was a P2
provisional base fare that was approved sometime in June and took effect in July last year.
Montealto stated of the amount, the LTFRB approved a permanent increase of only P1. Jeepney
drivers earlier filed a petition seeking a P3 increase in the minimum fare amid the soaring prices
of oil brought about by the conflict in Ukraine, among other reasons. (Gom-os, Cotejo, et al.,
2022)

According to the Philippine news agency, the Zamboanga city Land Transportation
Franchising and Regulatory Board (LTFRB) decided to grant a fare increase to Public Utility
Jeepneys (PUJ’S) updated on September 23, 2022, due for the prices of gasoline and diesel
increasing. LTFRB approved a fare rate increase for PUJ’S that will take effect on October 3,
2022. The new fare rate for PUJ’S is php12 for the first four kilometers and an additional
php1.80 per succeeding kilometer. For taxi’s, the flag down rate would be php45 and the fare for
regular buses will also go up to php11 for the first five kilometers and an additional php1.90 per
succeeding kilometer. (Garcia, 2022)

Because of this, the increase in vehicle fares in Zamboanga City has become a
top issue in the community, with many people complaining about how it affects their allowance,
particularly students, employees, and commuters, who are the most vulnerable to the impact of
increasing vehicle fares not only in Zamboanga City but throughout the Philippines. Hence, there
is always no certainty for the fix fare rate. It should matter at all times to the prices of gasoline
and diesel. One thing is for sure, without exemption, the commuters especially the students are
the number one mostly affected when it comes to their allowances is concerned. Due to the
increase in demand for oil, the price of it will impact both vehicle users and public transportation
operators, which is the primary cause of the increase in commuting rates.

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1.2 STATEMENT OF THE PROBLEM

This study aims to determine the effects of the increased vehicle fares on the
budgeting of allowances among grade 12 student commuters at Maria Clara L. Lobregat National
High School. Specifically, this study attempts to answer the following questions.

RESEARCH QUESTIONS

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

1.1 Age
1.2 Sex
1.3 Track & Strand
1.4 Daily allowance
1.5 Mode of transportation
2. Is the increased in vehicle fares significantly affect respondents’ budgeting of their
allowances?

HYPOTHESES H 0 : : The increased vehicle fares have no significant effect on the budgeting of
allowances among grade 12 student commuters.

H 1 : The increased vehicle fare has a significant effect on the management of allowances among
grade 12 student commuters.

1.3 CONCEPTUAL FRAMEWORK

DEPENDENT VARIABLE
INDEPENDENT
VARIABLE Budgeting of Allowances
among grade 12 students
Increasing Vehicle
Fares

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 Figure 1. Conceptual Framework

Figure 1 presents the conceptual framework of the study. It consist two variables, the increasing
vehicle fares as the independent variable and Budgeting of Allowances among grade 12 students
as the dependent variable. It shows how the increasing vehicle fares, as an independent variable,
has a significant effects on the budgeting of the grade 12 student commuter’s daily allowances.

1.4 SIGNIFICANCE OF THE STUDY

The purpose of this study is to determine the effects of the increasing vehicle fares to
the budgeting of daily allowances of the grade 12 student commuters. The following are the
beneficiaries of the study:

The School Administration. This research may be beneficial to the school administration for
them to know the struggles of those students who commutes every day.

The Teachers. This study will benefit the teachers for them to know the allowance budgeting
practices of the students regards to the requirements or projects they are giving. Also, this study
will inform the teachers if the budgeted allowance of the students in enough for them to finish all
the target requirements. Moreover, this study will help the teachers to enlighten the teachers to
be more considerate towards students’ concerns and needs. Through this it can provide them
deeper understanding to the insights of their students regarding financial budgeting.

The Grade 12 Senior High Students. This study is beneficial for the students who commutes
every day for them to be able to budget their allowances and be able to comply with the other
expenses or requirements of the school, and even help them refrain from being absent from
school.

The Vehicle Operators. This study is beneficial for the vehicle operators as this is their primary
source of income to support their family’s needs every day.

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The Future Researchers. This research may use as a basis in conducting future research on
commuter’s perspective about the increased fare of a certain vehicle/transportation and how they
budget their limited resources.

1.5 SCOPE AND DELIMITATIONS

This study aims to determine if the increasing vehicle fares affects the budgeting of
allowances of the students. This study is only limited to the 275 grade 12 students from all
strands of Maria Clara L. Lobregat National High School (MCLL NHS) for the school year
2022-2023. The variable to be focus on are the Grade 12 students who resort to using public
transportation as the mode of transportation to school and its effects on the budgeting of
allowances of the students. Each student will be given same set of questionnaires to answer the
online survey method via google forms. The respondents of the study are selected using the
Probability: stratified random sampling. This study will be conducted until the end of second
semester.

1.6 DEFINITION OF TERMS

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

COMMUTERS- A person who travels using the public utility vehicle to work/school regularly.

DAILY ALLOWANCES- The amount of money that a student receives from a parent or
guardian to on a daily basis.

FARE MATRIX- This is an official document from the land transportation franchising and
regulatory board that serves as a guide to passengers on the mandated fare rate per kilometer in
their area.
INFLATION RATE- Is the rate of increase in prices over a given period.

PUBLIC TRANSPORTATION- Public transportation is a system of transport for passengers

by group travel systems available for use by the general public unlike private transport, typically
managed on a schedule, operated on established routes, and that charge a posted fee for each trip.

TRANSPORTATION FARE- The money a passenger pays when riding a public utility
vehicle.

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 CHAPTER II

REVIEW OF RELATED LITERATURE

2.1 INTERNATIONAL STUDIES

RISING OIL PRICE

Geopolitical tensions between Russia and Ukraine and increased instability in the Middle
East add to 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.

The key factor seems to be that the demand for oil is rising much faster than its supply, and
this is due fundamentally to the fact that the few old oilfields on which the world relies for most
of its oil are being depleted and no new fields have been discovered that can match their
production and reserves (Bello, 2008). Bello stated in his statement that we need new fields that
can match the production and reserves of the old oilfields to supply us with enough oil because
they are likely to be depleted. If this problem is not solved, there will be a rapid increase in
demand but a decrease in supply of oil.

Looking back at February 24, 2022, the Russian invasion of Ukraine commenced, leading
to imposed economic sanctions in an attempt to hinder the war (Crismundo, 2022) including the
United States’ ban on all Russian gas and oil imports (BBC, 2022). Though these were
applicable to Russia, the globe is not immune to the consequences such as the aforementioned oil
price hike due to the long-time connection of nations. Dubbed as “economic globalization”, it is
significant to understand this concept seeing as the Philippines itself experiences it at such a dire
time.

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 As March 2022 went by, oil prices rose in the Philippines because of the constricted supply
of oil imports creating inconveniences for Filipinos, specifically for the transportation sector.
The pricing per liter increased at PHP 13.15 for diesel, PHP 7.10 for gasoline, and PHP 10.50 for
kerosene (de Vera, Ocampo, Subingsubing, & Salaverria, 2022). This phenomenon did not only
affect the country, but the rest of the world as well with market rebounds and oil prices upped at
8% (Rappler 2022).

This ongoing expansion and consensual integration of markets becomes impossible to stop
given the gaps between developed and developing countries. On a positive note, this means that
there are more opportunities to improve economies through employment and access to more
goods and services. The other side, however, expresses how economic globalization becomes the
reason for income disparity and poverty (Kilic, 2015).

Inevitably, any change in the global market has a wide-scale impact, which brings us back to
the economic sanctions brought about by the Russian-Ukrainian war. Economic Globalization,
therefore, paves the way for a chain reaction with the oil price hike as just the beginning
(Baluyot, 2022). Though this directly influences the transportation sector, it also results in higher
prices for goods and services due to transportation costs.

EFFECTS OF RISING OIL PRICE

Rising oil prices have an impact on costs such as transportation, manufacturing, heating and
the prices of goods made from petroleum. This is due to inflation and a decrease in economic
growth as a result of rising oil prices. Oil price increases are generally thought to increase
inflation and reduce economic growth. In terms of inflation, oil prices directly affect the
prices of goods made with petroleum products. As mentioned above, oil prices
indirectly affect costs such as transportation, manufacturing, and heating (Federal
Reserve Bank of San Francisco 2007). According to the Federal Reserve Bank of San Francisco,
rising oil prices have an impact on costs such as transportation, manufacturing, heating and the
prices of goods made from petroleum. This is due to inflation and a decrease in economic growth
as a result of rising oil prices.
The oil companies implemented a price increase in domestic oil products. Gasoline has
increased by P0.45 per liter, diesel by P1.70 per liter, and kerosene by P0.45 per liter (Department

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of Energy, 2022). According to the Department of Energy, oil companies raise the prices of their
products such as gasoline, diesel, and kerosene, which is then reflected in domestic oil products.

2.2 LOCAL STUDIES

EFFECTS OF PRICE HIKE TO THE STUDENT’S ALLOWANCE

While there are clashing views on the cause of oil price hikes, it cannot be denied that the
students are also affected by the phenomenon even if a huge majority of them are not yet paying
taxes.

Based from the news report of Philstar Global, John Albert Pagunasan, a senior
Communication Arts student from the University of the Philippines Los Baños, is worried that
commuting via jeepney, which he described as a “life saver” for students scrimping on their
budget, may soon be affected by the oil price hike, “As a student, I might feel the impact later
when people demand higher fares and that's when I have to shell out more for my transportation
fare and it might cut my budget for my necessities” he said. (Department of Finance, 2017).

Carlos Manapat, an economics professor from UST, said students have no choice but to use
the allowance given to them by their parents wisely. He said students can refrain from buying
products that are affected by the rising oil price hike. Jeepney drivers should also retain the fare
discounts given to students, he added. (Balinbin, 2020).

STUDENT’S FARE DISCOUNT

A Senate bill is seeking to expand fare discount for students even during vacations from
schools, weekends, and holidays. Senate bill by Sen. Juan Edgardo “Sonny” Angara, aims to
institutionalize the grant the student fare discount on land, water, air and rail transport utilities to
“lessen the impact of the current economic difficulties and assist students and their parent or
guardians in shouldering the transportation expenses relative to the rising cost of education in our
country”. Under the proposed measure, a 20% discount on regular fares will be granted to

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students upon presentation of their identification cards or validated enrolment forms. “The said
fare discount shall be available during the entire school year for elementary and secondary
students, during the semester for college students, and during the duration of a course for
vocational or technical students, including Saturdays, Sundays, Christmas vacations and other
holidays during a school year or a school semester,” the bill read. Angara said the discount
expansion would enable and encourage students to do research and group studies even during
weekends and school breaks. (Gonzales, 2017).

CHAPTER III

METHODOLOGY

This chapter presents the Research Design, Population and Sampling Design, Locale of the
Study, Research Instrument, Data Gathering Procedure, Statistical Tool and Ethical
Consideration.

3.1. RESEARCH DESIGN

In this study we will be using Descriptive-Comparative research design in
gathering the necessary data. The researchers would like to compare the differences between
the usage of private vehicle and public transportation to the budgeting of daily allowances of
the students.
The said method will be used in order to determine if the increased vehicle fares
significantly affects the budgeting of daily allowances of the grade 12 students.

3.2. POPULATION AND SAMPLING DESIGN

There is a total population of 882 grade 12 students currently enrolled at Maria
Clara L. Lobregat National High School (MCLL NHS). The Probability: Stratified Random
Sampling method was utilized to divide the population into strata or sub-group regarding to
the strands they are in.it will include all strands namely, STEM (Sciences, technology,
Engineering, Mathematics) ABM (Accountancy, Business and Management) and HUMSS
(Humanities and Social Sciences) TVL ICT (Information and Communication Technology)
TVL Dressmaking, TVL Caregiving, TVL Bread and Pastry, TVL Automotive, TVL EIM
(Electrical Installation Management) where in researchers will be using the slovins formula

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 as a technique in order to get the target sample size for the study and only 270 students was
acquired. The population is presented on the table 1.
SLOVIN’S FORMULA:

Table 1. Distribution of the Sample

STRANDS POPULATION SIZE SAMPLE SIZE

STEM

ABM

HUMSS

ICT

DRESSMAKING

CAREGIVING

BREAD AND PASTRY

AUTOMOTIVE

EIM

N= n=

3.3. LOCALE OF THE STUDY

` This study will be conducted at Maria Clara L. Lobregat National High School
(MCLL NHS). The researchers chose it as the locale since it is where they are now enrolled
in classes to study. Maria Clara L. Lobregat National High School (MCLL NHS) is a public
school located at MCLL highway Divisoria in the district of Zamboanga City.

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3.4. RESEARCH INSTRUMENT

The researchers will be using the survey questionnaire in order to gather the
informations from the grade 12 students. The questionnaire adapted from (Almando, Bernal,
et. al., 2022) will contain two parts, for the first part is the student`s demographic profile, for
the second part is about how the increasing of vehicle fare affected the budgeting of their
daily allowances. An online survey method wherein we will be using google forms in
collecting the data, which means that the questionnaires will be given through online.

3.5. DATA GATHERING PROCEDURE

In gathering the data, the researchers will be conducting this study at Maria Clara
L. Lobregat National High School particularly with the grade 12 students. After the
approval for the conduct of the study, the researchers will prepare the survey questionnaires
to be used in collecting the data, the researchers will secure the respondent’s approval and
will explain the instructions for clarification and assure them for their strict confidentiality
and anonymity, and then lastly the researcher will proceed to the data analysis.

3.6. STATISTICAL TOOLS

This study will be using the corresponding statistical method to analyse the data
for the interpretation.

Frequency and percentile- this will be used to determine the total number of responses
made by the respondents in each question, as well as to determine the respondent’s profile
in terms of their age, sex, track & strand, and their daily allowance.

One Way Anova- this will be used to compare the variables which is the usage of private
vehicle and public transportation in relation to their daily allowances to determine if there is
a significant effect between the two variables.

3.7. ETHICAL CONSIDERATION

The researcher will apply the principles of ethical considerations by Bryman and
Bell (2007). In regard to the involvement to this study, the participants will not be
subjected to harm in any ways. Prior to the study, full consent will be obtained from the
participants, the Grade 12 students of Maria Clara L. Lobregat National High School.

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 In addition, the protection of the privacy of research participants will be ensured.
Voluntary participation of respondents in the research will be treated very important.
Moreover, they have rights to withdraw from the study at any stage if they wish to do so.
In handling the data, adequate level of confidentiality will be ensured. Any form of
misleading information, as well as representation of primary data findings in a biased way
will be avoided. On the other hand, maintaining the highest level of objectivity in
discussions and analyses throughout the research will be considered. Furthermore,
affiliations in any forms, sources of funding, as well as possible conflicts of interest will be
declared. Lastly, any type of communication to this research will be done with honesty and
transparency.

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