Final 1 - Chapter 1-2

KALINGA STATE UNIVERSITY
College of Business Administration and Accountancy

Master in Business Administration
CHAPTER I
THE PROBLEM
Background of the Study
One of the major components of globalization is the transportation sector,
which plays a very significant role in the people’s daily activities and the economy. It
serves as the backbone for the other sectors’ economic development. Fuel has been
the major source of energy through the years. Fuel prices are a cost to transportation
industries and a direct cost to the consumers. Fuel price is one of the most important
factors affecting transport cost. It comprises more than fifty percent (50%) of the total
operating cost for the transportation industry nowadays.
Our daily lives are now impossible to imagine without gasoline and diesel, the
two primary components of fuel. If fuel costs skyrocket, it will have an inevitable
impact on how we live daily. Business will be more severely impacted, particularly in
the transportation industry. It is a domino effect that, once it starts, will affect
everyone. An increase in fuel costs will raise the cost of transportation, which will
have an impact on the cost of goods. Drivers would gradually be forced to find better
term even more as prices for items arise. It can be a drag on the economy, having an
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influence on consumer spending as well as having ripple effects across the entire
economy.
According to James Chen (February 2022), crude oil is a raw natural
resource that is extracted from the earth and refined into products such as gasoline,
jet fuel, and other petroleum products. It is a global commodity that is traded in
markets around the world; both as spot oil and via derivatives contracts. Crude oil is
the world’s primary energy source — the backbone of transportation as well as
electricity generation, which powers almost every aspect of our lives (Lawrence
Pines, 2022).
Today, the world’s economy is largely dependent on fossil fuels such as
crude oil, and the demand for these resources often sparks political unrest as a small
number of countries control the largest reservoirs. Like any industry, supply and
demand heavily affect the prices and profitability of crude oil. The United States,
Saudi Arabia, and Russia are the leading producers of oil in the world. The
Organization of the Petroleum Exporting Countries (OPEC) was founded in 1960 has
been the world's largest (by volume) holder of crude oil and natural gas reserves. As
a result, the OPEC nations had a great deal of economic leverage in determining
supply and the price of oil. (James Chen, 2022).
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(Litman, 2017) outlines transportation as the actions principally related to the
provision of changing geographical position and the relocation of people and goods.
Unquestionably, transportation is seen as a crucial aspect in the economic
development of nations (Chang, 2012). Transportation is believed to be efficient
when it facilitates spatial interface, reduces distance and also serves as a
requirement for effective economic, social and political development of a country
(Aikins and Akude, 2015).
Motorized tricycle operation is one of the most remarkable, descent and chief
means of transportation. It is also one of the major sources of livelihood for low-
income earners and unemployed people (Abichuela, 2016)
There are numerous factors that could ultimately influence the price of fuel,
such as weather, government regulations, and international relations, can influence
the price of fuel, there are four that have the most significant influence. These
factors include price of crude oil, refining expenses and profits, distribution and
marketing costs, and fuel taxes are all aspects to consider. Alternative fuels, such as
natural gas, propane, electricity, and biofuels, can help to minimize price variations
caused by short-term occurrences such as natural catastrophes by diversifying the
fuel supply; nevertheless, some alternative fuel costs are also influenced by
comparable reasons. (Capital District Clean Communities, 2013)
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The cost of crude oil, refining costs and profits, distribution and marketing
costs and profits, and taxes are the four components of retail price of gasoline. As of
June 2022, average retail price of gasoline is $4.93. Taxes is 10%, distribution and
marketing is 8%, refining costs and profits is 27% while cost of crude oil is 55%
according to the Gasoline and Diesel Fuel Update of U.S. Energy Information
Administration.
Impacts of Oil Price Hikes on The Philippine Economy
High Inflation. According to the Philippine Statistics Authority, the share of oil as a
non-renewable resource rent is 0.19% of the gross domestic product (GDP) for the
last 20 years. In addition, oil is also one of the most significant contributors to
manufacturing costs. While the consumers, are still not shouldering these costs,
producers cannot cushion them for long. As a result, these will be passed down to
the consumers, increasing the overall prices of goods and services, causing inflation.
In fact, Bloomberg predicts that a “10% rise in oil prices could add a 0.4 percentage
points” to Philippine inflation. To add, Bangko Sentral ng Pilipinas (BSP) governor
Benjamin Diokno also sees the high oil prices to drive inflation as high as 5.5% to
6%. This is above BSP’s expected rate, which is between 2% to 4%.
Economic Slowdown. In the long run, sustained oil price hikes can slowdown the
growth of an economy. Like an ordinary Filipino household, the Philippine economy,
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in general, is also up for a rough ride. Production, transportation, and manufacturing
costs are also driven up by high oil prices. Furthermore, Bloomberg sees the
Philippines and India among the Asian countries taking the worst hit from the oil war
spike.
The impact of increasing oil prices on the economy and inflation rate may
have been influenced by monetary authorities. Some have argued that policymakers
during the 1970 oil shocks were blamed for failing to take inflationary consequences
into account when devising policy measures. Since the government was not going to
pay much attention to inflation, households and companies may have deduced that
oil shocks would lead to a major increase in future inflation. Core inflation and
inflation expectations have stayed contained despite the surge in headline inflation
caused by oil and commodity shocks in the 2000s because the public is more aware
of the government’s commitment to combating inflation. As a result, oil shocks no
longer have the same influence on output as they once did because the globe has
evolved. Other factors may have been at play, and the decade’s weak growth may
not have been the result of oil shocks as popularly thought. It is not always the case
that the price of crude oil influences the price of gasoline in the same way. The price
of oil is determined by supply and demand because it is a global commodity. When
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there is a surplus of a good or service, the price falls. When demand exceeds supply,
the price of a thing rises.
In the Philippines, since January 2022, gasoline prices have risen by P7.95 a
liter, diesel by P10.20, and kerosene by P9.10. This is on top of last year’s net
increases that amounted to more than P10 a liter. The inevitable results are higher
transport fares and a rise in food prices, adding to consumer woes just as the
country’s economy is poised to recover from the pandemic. Imported oil prices are
growing as global supply remains constrained. Brent crude has jumped to
$103/barrel, while the benchmark Dubai crude is currently at $92/barrel. These
have resulted in corresponding increase in domestic pump prices with gasoline
up by P8.75/liter, diesel by P10.85/liter, and kerosene by P9.55/liter since the
start of the year. Due to the price of the gasoline the drivers from any places are
having a hard time dealing with the said issue (Cigaral, 2021).
Ironically, much of these price increases were due to the re-opening of the
world’s economies after a two-year slump due to the pandemic. This revival of
activity came with a corresponding increase in the demand for oil but
unfortunately, supply levels were still low and this exerted upward pressures on
prices. Meanwhile, the low supply could be attributed to two years of dampened
demand as countries closed their borders, restricted the mobility of its citizens
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and imposed limitations on the operations of businesses. At one point, the price
of oil plunged to negative $40/barrel. Of course, the OPEC has already started
scaling up its production but it would take some time before we can see a
stabilization of supply. The expected disruptions due to rising tensions between
Russia and Ukraine, the Organization of Petroleum Exporting Countries cartel's
diminishing reserves, and the low global inventory of crude and processed products
are all factors influencing global supply. Russia is one of Europe’s most important
exporters of oil and gas which produces about 10% of the world’s oil supply. Because
of Russia’s continuous incursion into Ukraine, the United States is contemplating
sanctions against that country. As a result, the worldwide market is scurrying to stock
up or locate new suppliers. The combination of high demand and limited supply
drives up the price of oil and gas. These sharp increases in fuel prices will
undoubtedly have an impact to the overall economy including businesses. Public
utility vehicle (PUV) operators and drivers, as well as private motorists have
been cringing from the almost weekly increase in pump prices (Angara, 2022).
Annual fuel imports account for more than ninety percent of the total demand
in the country. Pump prices in Manila, a huge metropolis of 13 million people, have
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risen by 30% for gasoline and 66% for diesel, according to government data. 81.85
pesos ($1.56) per liter was the highest price for gasoline ever recorded in the country
in mid-March 2022. The net increase for the year has been adjusted to P29.50/liter
for gasoline, P44.25/liter for diesel and P39.65/liter for kerosene. Additionally, oil
companies increased the cost of diesel by P3.10 per liter and gasoline by P0.80 per
liter as of July 2022. For the Public utility vehicle operators and drivers, this
means decrease earnings, reduced their spending and perhaps cannot save
anymore since they have to pay more for fuel. The same goes for the agriculture
and fisheries sector who need fuel to fire up their equipment and boats. Once
their goods are transported to the markets, consumers will also have to pay more
because of the mark up in the unit prices due to the higher cost of fuel.
Disposable income decreases when commodity prices rise and household incomes
remain the same. Because of this, some people’s ability to purchase a wide range of
goods is limited. This domino effects have impact on the economy’s agriculture
and transport sectors at most.
Transport is a key sector in the Philippine economy, linking population and
economic centers across the islands. Any economic and social well-being depends
largely on the performance of its transportation service system. The transport
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business provides opportunities for the mobility of the people and goods. It also
influences patterns of growth and the level of economic activity through the
accessibility it provides to land. Transportation businesses are needed in order to
transport consumer goods from manufacturers to the wholesalers and retailers.
Without this industry, consumers would not have access to the food and other goods
that they need. Modes of land transportation in the Philippines are taxi, pedicab, bus,
jeepneys, tricycle or trike, and other public utility vehicle and private vehicle. Though,
tricycle is the main mode of transportation in the urban areas and is normally used for
short-distance travel. It can ferry from 2 to about 7 people. Tricycles are not just a
common form of transportation for millions of Filipinos, but it is also a source of
revenue. They have little access to formal financial services and rely on a tiny daily
income from a community-based transportation company to make ends meet.
Transporting customers from their homes to markets, schools, churches, offices, and
other locations is the main source of income for tricycle drivers and their families.
However, one of the most severely impacted sectors of our nation's economy as a
result of the pandemic is the tricycle industry. It becomes much more challenging
because of the rising cost of gasoline in the Philippines and the fact that gasoline is
typically used as an engine fuel in the vehicles used by tricycle drivers.
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To have a brief overview of the City of Tabuk, we included some excerpts of
the description of the city. T a b u k C i t y i s p o l i t i c a l l y s u b d i v i d e d i n t o
f o r t y - t h r e e b a r a n g a y s . Aside from being the capital of Kalinga, Tabuk is also
the chief trading center of the province. However, its economy is primarily agricultural
where rice, corn, coffee, vegetables, livestock, and poultry are produced. Being a
landlocked locality with no airport, Tabuk is accessible only by land transportation.
According to the Business Permit and Licensing Office (BPLO) who is responsible in
processing of business applications both new and renewal, as of 2022 there were
9,450 registered tricycle or trike operators and drivers in Tabuk City, where as 603
only renewed their permit to operate as of June 2022 but some who did not renew
still operates.
Thus, this research intends to gain a better understanding on the implications
to the tricycle drivers and operators in Tabuk City since fuel price increases. To
determine also the coping mechanism adopted by the respondents and to see if
there is a significant difference on the respondent’s socio-demographic profile and
the implications to the tricycle drivers and operators. The results of this study could
be useful to the drivers and operators whether public utility vehicle (PUV) or private
vehicle as well as the consumers to improve their efficiency in the usage of fuel.
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Conceptual Framework
Psychological, sociological, and even economic theories have all emerged as
a result of extensive academic research. Like the theory of price is an economic
theory that states that the price for any specific good or service is based on the
relationship between its supply and demand. Consumer theory is the study of how
people decide to spend their money based on their individual preferences and budget
constraints. Building a better understanding of individuals' tastes and incomes is
important because these factors impact the shape of the overall economy. And also,
The Psychology of Consumption is an essential notion that looks at not only selling a
product/service but also, how the after-purchase consumption rate is important in
guaranteeing repeat purchases. When it comes to concepts and phenomena,
theoretical frameworks are widely used. It can be helpful to include these models in
research articles and grant proposals. This guide gives an overview of the concept, a
list of frequently used frameworks, and additional recommendations to the tricycle
drivers and operators in Tabuk City. Participants would be interviewed to uncover the
meanings and categories they attributed to their encounters and how they evaluated
their working lives in this environment. Data from the interviews would be analyzed
inductively.
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Paradigm of the Study
Process Output
Input
1. Distribution of - To determine the
Socio-demographic Profile
Modified Likert Scale implications to the tricycle
of the Respondents
Questionnaires. drivers and operators in
- Drivers and Operators of
Tabuk City and its coping
Tricycle/Trike in Tabuk City 2. Collecting data from
mechanism adopted by the
respondents through
Modified questionnaire retrieval of respondents.
based from the questionnaires.
- To determine the
implications to the tricycle
3. Tallying results from relationship between coping
drivers in the increase of
acquired data mechanism and Socio-
fuel and their adopted
demographic profile.
coping mechanism.
4. Interpretation of
gathered data using Z-
Test statistical treatment
Feedback
IPO Impact of Fuel Price Increase to the Tricycle drivers and Operators in Tabuk City
Figure 1.
The paradigm of the study provides a structural frame for the research and
serves as the basis of the research problem. The study follows the Input-Process-
Output Model. The input included in this study consist of the age, educational
attainment, length of service, consumption of fuel in liters per day, income before and
after the increase of fuel in a day. The drivers and/or operators living in Tabuk City as
respondents as well as the independent variable was the input which then would be
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needed for the process of distributing surveys, gathering data, tallying the results and
interpreting gathered information. Finally, the expected output of the study is the
determination of the implications to the drivers and operators of tricycle in the fuel
price increase in Tabuk City, determination of coping mechanism adopted by the
respondents and finding out the significant difference between the respondent’s
socio-demographic profile and its implications to the drivers and operators.
Objectives of the Study
This study generally seeks to determine the implications to the tricycle drivers
and operators in fuel price increase in Tabuk City. Specifically, it aims to:
1. To determine the socio-demographic profile of the respondents in terms
of:
a. Age
b. Length of years of service as driver
c. Number of liters of gasoline consumption per day
d. Income per day before the increase of fuel
e. Income per day after the increase of fuel
2. To determine the implications to the drivers and operators in the fuel price
increase.
3. To determine the coping mechanism adopted by the respondents.
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4. To determine the relationship between the respondent’s socio-
demographic profile and the coping mechanism adopted by the
respondents.
Definition of Terms
In order to provide clarity and to establish a common view of understanding,
the term below is operationally and conceptually defined:
Price. It refers to the amount of money that has to be paid to acquire a given
product.
Fuel. It is referred to as a substance that is used to provide heat or power.
Methanol, Gasoline, Diesel, Propane, Natural gas, Hydrogen are types of fuel.
Increase. Is defined as to become bigger or greater. An example of increase
is someone getting a raise in their salary. To become larger.
Tabuk City. A fifth-class component city and the capital of Kalinga province
where the study was conducted.
Inflation. Is the increase in prices over a prolonged period of time.
Demand. Is the desire of customers for items and services and their
willingness to pay a price for such things and services.
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Organization of the Petroleum Exporting Countries (OPEC). Is a cartel
consisting of 13 of the world’s major oil-exporting nations. Aims to regulate the
supply of oil in order to set the price on the world market.
Tricycle drivers. Tricycle drivers are the people who drive or operate the
tricycle for commercial purpose. These are people who have taken this business as
their main occupation which typically belong to low-income groups.
Gas. Gasoline is a fuel made from crude oil and other petroleum liquids. In
this study, we use this term as mainly used as an engine fuel in vehicles of Tricycle
drivers.
Implications. A possible future effect or result.
Coping. Refers to conscious strategies used to reduce unpleasant emotions.
A strategy use by drivers to resolve stress or problems encounter during increase in
fuel.
Significance of the Study
This study is important in knowing the fuel price increase and its implications
to the drivers and operators of tricycle/trike in Tabuk City and coping mechanism to
woe the burden. The result and related findings of this study are particularly
important and beneficial to the following:
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Drivers and Operators. To change or adjust the cost of living of these people
and to assess what are some tips in order to help them save fuel as an alternative
solution to lessen their burden.
Transport Sector. This study will help other transport sector in guiding drivers
and operators on how to reduce the fuel consumption or fuel efficiency in their day to
day driving within the community of Tabuk City.
Consumers. It could be useful for them also to lessen their consumption on
fuel and help them on saving fuel spending.
Passengers or Commuters. This will inform the passengers especially the one
who are ranting about the sudden increases of fare for them to be considerate to the
situation being face by the tricycle drivers.
Government. For them to be aware how impacted the lives of tricycle drivers
in the increase of fuel and to find a solution to help the drivers, operators and
consumers.
Future Researchers. This study will serve as their basis for more narrowed
and specific results. Furthermore, this can also help them with the other information
concerning about the impact of fuel price increase to the tricycle drivers.
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CHAPTER II
DESIGN AND METHODOLOGY
This chapter provides information about the research design, locale and
population of the study, the data gathering to be utilized, the validity and reliability of
data, and the treatment of data that used for the purpose of this study.
Research Design
The researcher will utilize mix designs in conducting the study. The
researcher will conduct a Quantitative-Descriptive Research. In quantitative research,
the researcher collects numerical data from first-hand sources via survey questions
to evaluate the issue of the increase price of fuel and the implications to the tricycle
drivers and operators in Tabuk City. Since the study aims to know the implications to
the drivers and operators in fuel price increase, the researcher will also use the
evaluative method. And z-test to find out the significant difference of socio-
demographic profile and implications to the drivers. After the evaluation of answers,
the results are validated through interviews to the participants in order to obtain in
depth understanding.
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Locale and Population of the Study
The researcher chose to conduct the study in the community of Tabuk City,
Kalinga. The selection of the respondents is only drivers and operators of tricycle or
trike is eligible to participate. The researcher will utilize Stratified and Simple Random
Sampling to ensure that every driver had an opportunity to participate in the study. A
sample of 383 people residing in the locale chosen were selected for the study using
Slovin’s Formula to calculate an appropriate sample size from a population . A
representative sample of survey takers will be chosen randomly to assure the
accuracy of the final participation count.
Data Gathering Instrument
The researcher will use survey questionnaires as an instrument for gathering
data in accomplishing the research since the study is evaluative. This study will use a
five-point likert scale to indicate the degree to which their no affect or major affect or
impact about the statement or question. With this scale, respondents were asked to
rate items on the implications of fuel price increase to the tricycle drivers and
operators in Tabuk City and the adopted coping mechanism by the respondents. The
researcher will use the Likert Scale in order for the respondents to choose the option
that best supports their opinions on the issue that arises.
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Validity and Reliability of Instruments
The questionnaire adopted is the study of the impact of fuel price hike on
consumers by V. Sivakami Priyadharshini (BEST ISHAMS, 2015) and from other
researches related to this study.
Using the survey questionnaires, drivers and operators residing within the
community will be able to express their views on the implications of increasing fuel
prices and how impacted their lives with each statement whether no affect, minor
effect, neutral, moderate effect and major effect.
Data Gathering Procedure
The questionnaires will be given to the respondents as an exam. After which
their answers will be validated through interviews.
Treatment of Data
The data from the set of questionnaires are needed to classify, tabulate, and
confine. To interpret the data effectively, the researcher employs the following
statistical treatment. The Mean, Frequency, Percentage and Z-test.
Statistical Tools
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The following statistical tools will be use in arriving at the object analysis of
data gather.
Mean - This will be used to determine the evaluation of the respondents with
regards to the impact of increased price rate of fuel and its impact to the lives of
drivers and operators in Tabuk City.
σ𝑥
𝑥ҧ=
𝑁
Here,
x represents the mean
∑ represents the summation
x represents scores
N represents number of scores
Frequency - The frequency is determined to tally the response per item.
Percentage – This will be use to present the population to the respondents
according to their score’s interval of the given questionnaires.
Z-test - A one-sample z-test is used to test whether a population parameter is
significantly different from some hypothesized value. This will be used in our study in
order to determine if there was a significant indication on the respondent’s socio-
demographic profile and the impact to the tricycle drivers and operators particularly
the drivers of the residents in Tabuk City.
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Formula to find the value of Z (z-test) is:
x −μ
n=
σ
√n
X̄= mean of sample
μ = mean of population
σ = standard deviation of population
n = no. of observations
REFERENCES
Bhandari, P. (2020, June 12). What Is Quantitative Research?

Definition, Uses and Methods. Scribbr. Retrieved from
https://www.scribbr.com/methodology/quantitative-research/
21
Evaluation Research: Definition, Methods and Examples.

(n.d.). Question Pro. Retrieved May 22, 2022 from
https://www.questionpro.com/blog/evaluation-research-definition-methods-
and-examples/
Haradhan, M. (2017, October 1). Two Criteria for Good

Measurements in Research: Validity and Reliability. Munich Personal RePEc
Archive. Retrieved from
https://mpra.ub.unimuenchen.de/83458/1/MPRA_paper_83458.pdf
McLeod, S. (2019). Likert Scale Definition, Examples and

Analysis. Simply Psychology. Retrieved May 22, 2022 from
https://www.simplypsychology.org/likert-scale.html
Philippine consumers use app to counter record retail fuel

prices. (2022, May 6). REUTERS. Retrieved May 22, 2022 from
https://www.reuters.com/technology/philippine-consumers-use-app-counter-
record-retail-fuel-prices-2022-05-06/
Reyes, C., Sobrevinas, A., Bancolita, J., and De Jesus, J.

(2008). Analysis of the impact of changes in the prices of rice and fuel on
poverty in the Philippines. Retrieved from: https://www.pep-net.org/sites/pep-
net.org/files/typo3doc/pdf/CBMS-food-prices/
Philippines_Impact_of_Rising_Prices_051710.pdf
Saari MY, Radam A, Abdullah AM. The impacts of increase in

the domestic petroleum prices on cost production in the Malaysian agricultural
and agro-based sectors. International Journal of Business and Society 2008;
9(1):37-52. ISSN 1511-6670, 2008.
Valadkhani A, Mitchell WF. Assessing the impact of changes

in petrol prices on inflation and household expenditures in Australia. Centre of
Full Employment and Equity (COFFEE); August 2001.
What are the possible causes and consequences of higher oil?

prices on the overall economy? (2007, November). Federal Reserve Bank of
San Francisco. Retrieved May 22, 2022 from
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https://www.frbsf.org/education/publications/doctor-econ/2007/november/oil-
prices-impact-economy/
QUESTIONNAIRE
Fuel Price Increase and its Implications to the Tricycle Drivers and Operators
in Tabuk City
Instructions: Check (✓) the corresponding spaces for each item which satisfies your
answer.
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I. Socio-demographic Profile of Respondents
a. Age: □ 25 & below □ 26 to 35 □ 36 to 45

□ 46 to 55 □ 56 to 65
b. Length of years of service as driver:
□ Below 1 year □ 1 to 5 years □ Above 5 years
c. Approximately # of liters fuel consumption per day:
□ 1 to 3 liters □ 4 to 6 liters □ 7 to 10 liters □ 10 liters above
d. Income per day in (2021) before the increase of fuel:
□ Below 500 □ 500 to 1,000 □ 1,001 to 1,500 □ above 1,500
e. Income per day in (2022) after the increase of fuel:
□ Below 500 □ 500 to 1,000 □ 1,001 to 1,500 □ above 1,500
II. Implications to the respondents (Drivers)
Item Strongly Strongly

Agree Neutral Disagree
No. Items Agree Disagree
5 4 3 2 1
Lessen buying
1 capacity of
goods/services
Cleaner
environment
2
(Discontinue
tricycle operation)
3 Reduce savings
Minimize
4 household
budgets.
Reduces frequency
5
of travel/trips
6 Lesser passengers
Engage physical
7 activity (walking,
etc)
Reduces travel
8
recreation activities
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Cut back on certain

9
other expenses
10 Changes lifestyle
III. Coping mechanisms adopted by the respondents.
Item Strongly Strongly

Agree Neutral Disagree
No. Items Agree Disagree
5 4 3 2 1
Implemented an
1
alternate schedule
Re-examine
2
household budget
3 Regulate speed
4 Flexible Service
Observe load
5
capacity
Observe idling for
6
too long
Look for an
7
additional income
8 Fuel Subsidy
Vehicle
9.
maintenance
10. Car-pooling
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Permit to Conduct Study
August 8, 2022
________________________
____________, Kalinga
Dear Sir/Maám:
Greetings!
The undersigned Master in Business Administration student of the College of

Business Administration and Accountancy in Kalinga State University is currently
conducting research entitled, “Analysis of the impact of increase in the price of fuel to
the transport sector in Tabuk City”. The researcher strongly believes that the results
of this study will greatly help in coming up strategies to reduce or save the
consumption of fuel.
With this regard, the researcher respectfully asks for your permission to float
questionnaires to the drivers.
Thank you for your help and cooperation.
Very truly yours,
JONALYN E.
ARELLANO
Noted by:
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Romualdo U. Wacas, PhD.BA

Adviser
Letter to the Respondents
August 8, 2022
________________________
____________, Kalinga
Dear Respondents:
Greetings!
The undersigned Master in Business Administration student of the College of

Business Administration and Accountancy in Kalinga State University is currently
conducting research entitled, “Analysis of the impact of increase in the price of fuel to
the transport sector in Tabuk City”. The researcher strongly believes that the results
of this study will greatly help in coming up strategies to reduce or save the
consumption of fuel.
With this regard, the researcher respectfully requests you to take time in
honestly and patiently answering the attached questionnaire. The results will be
pooled and rest assured that your identity and results will remain confidential.
Thank you for your help and cooperation.
Very truly yours,
JONALYN E.
ARELLANO
Noted by:
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Romualdo U. Wacas, PhD.BA

Adviser
CURRICULUM VITAE
JONALYN ESPITA ARELLANO

Bulanao Norte, Tabuk City
Phone: 0945-9733-695/0906-777-8349
Email: jonalynarellano78@gmail.com
PERSONAL BACKGROUND
Date of Birth : October 8, 1995

Place of Birth : Tabuk City
Sex : Female
Civil Status : Single
Height : 1.56 m.
Weight : 46 kg.
EDUCATIONAL BACKGROUND
Kalinga State University, Tabuk City 2012-2017

• Bachelor of Science in Accountancy
Saint William’s Academy, Tabuk City 2008-2012
New Age Montessori School, Tabuk City 2002-2008

WORK EXPERIENCE
Provincial LGU (ACCOUNTING OFFICE), Kalinga

• Clerk Sept. 2021 – June 30, 2022
BMJ BUILDERS, Tabuk City
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• Assistant Bookkeeper/Cashier Aug. 2019 – Aug. 31, 2021

Kalinga State University
• Cashier Clerk Nov. 2017 – June 30, 2018
ELIGIBILITIES: CS Sub-Professional (May 2015)
TRAININGS/SEMINARS ATTENDED
April 29-30, 2021 Business & Income Taxation for Non-

Accountants
MPM Consulting Services, Inc.
Mar. 27, 2021 Bookkeeping, Internal Control Capability

Enhancement/Tax and Other Regulatory
Frameworks Compliance Training for
Bulanao Public Market MSME’s
Kalinga State University
Emelias, Bulanao, Tabuk City, Kalinga
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KALINGA STATE UNIVERSITY

College of Business Administration and Accountancy

Background of the Study

One of the major components of globalization is the transportation sector,

operating cost for the transportation industry nowadays.

According to James Chen (February 2022), crude oil is a raw natural

the world’s primary energy source — the backbone of transportation as well as

Today, the world’s economy is largely dependent on fossil fuels such as

supply and the price of oil. (James Chen, 2022).

(Litman, 2017) outlines transportation as the actions principally related to the

Unquestionably, transportation is seen as a crucial aspect in the economic

development of nations (Chang, 2012). Transportation is believed to be efficient

when it facilitates spatial interface, reduces distance and also serves as a

requirement for effective economic, social and political development of a country

(Aikins and Akude, 2015).

income earners and unemployed people (Abichuela, 2016)

such as weather, government regulations, and international relations, can influence

caused by short-term occurrences such as natural catastrophes by diversifying the

comparable reasons. (Capital District Clean Communities, 2013)

Impacts of Oil Price Hikes on The Philippine Economy

points” to Philippine inflation. To add, Bangko Sentral ng Pilipinas (BSP) governor

6%. This is above BSP’s expected rate, which is between 2% to 4%.

growth of an economy. Like an ordinary Filipino household, the Philippine economy,

in general, is also up for a rough ride. Production, transportation, and manufacturing

of the government’s commitment to combating inflation. As a result, oil shocks no

of oil is determined by supply and demand because it is a global commodity. When

the price of a thing rises.

growing as global supply remains constrained. Brent crude has jumped to

$103/barrel, while the benchmark Dubai crude is currently at $92/barrel. These

have resulted in corresponding increase in domestic pump prices with gasoline

up by P8.75/liter, diesel by P10.85/liter, and kerosene by P9.55/liter since the

prices. Meanwhile, the low supply could be attributed to two years of dampened

of oil plunged to negative $40/barrel. Of course, the OPEC has already started

stabilization of supply. The expected disruptions due to rising tensions between

Russia and Ukraine, the Organization of Petroleum Exporting Countries cartel's

of Russia’s continuous incursion into Ukraine, the United States is contemplating

undoubtedly have an impact to the overall economy including businesses. Public

and transport sectors at most.

Transport is a key sector in the Philippine economy, linking population and

largely on the performance of its transportation service system. The transport

accessibility it provides to land. Transportation businesses are needed in order to

transport consumer goods from manufacturers to the wholesalers and retailers.

common form of transportation for millions of Filipinos, but it is also a source of

income from a community-based transportation company to make ends meet.

typically used as an engine fuel in the vehicles used by tricycle drivers.

To have a brief overview of the City of Tabuk, we included some excerpts of

the description of the city. T a b u k C i t y i s p o l i t i c a l l y s u b d i v i d e d i n t o

f o r t y - t h r e e b a r a n g a y s . Aside from being the capital of Kalinga, Tabuk is also

landlocked locality with no airport, Tabuk is accessible only by land transportation.

According to the Business Permit and Licensing Office (BPLO) who is responsible in

Thus, this research intends to gain a better understanding on the implications

there is a significant difference on the respondent’s socio-demographic profile and

Psychological, sociological, and even economic theories have all emerged as

a result of extensive academic research. Like the theory of price is an economic

constraints. Building a better understanding of individuals' tastes and incomes is

product/service but also, how the after-purchase consumption rate is important in

guaranteeing repeat purchases. When it comes to concepts and phenomena,

list of frequently used frameworks, and additional recommendations to the tricycle

Paradigm of the Study

price increase in Tabuk City, determination of coping mechanism adopted by the

socio-demographic profile and its implications to the drivers and operators.

Objectives of the Study