EXPERIENCES OF TRICYCLE DRIVERS TOWARDS THE FUEL PRICE

HIKE IN BALO-I LANAO DEL NORTE

____________________
A Research Study
Presented to the Faculty of
MSU Balo-i Community High School
Senior High Department

___________________

In Partial Fulfillment of the Requirements

for Practical Research II Subject

Academic Track
General Academic Strand

_____________________

Aleeya Hanna U. Usman

Sajah U. Amerol
Johayra M. Edris
Insirah A. Hadjinasser
Sanairah S. Macalanggan
Nishren D. Mohammad
Sittieasya A. Sowaib
Jamila S. Tomara

February 2023
 CHAPTER I
BACKGROUND OF THE STUDY

Introduction

The Philippines is currently experiencing record-high gas prices. This is due to

a number of factors, including the global price of crude oil and the weakening of the

Philippine peso versus other currencies. The current average price of gasoline in the

Philippines is P70 per liter, significantly higher than 2019’s average price of PHP 45

per liter (Department of Energy). Thus, the rising price of gas has a direct impact on

Filipino households, many families are already struggling to make ends meet. Not

only Filipino households but also oil companies, consumers, and small businesses.

There are a number of reasons why gas prices are on the rise. As an example,

the global price of crude oil is one of the main factors. Crude oil is a major component

of gasoline, so when the price of crude oil goes up, gas prices usually follow suit.

Also, the Department of Energy (DOE) said that the surge in global oil prices was

triggered by Ukraine war. With it, comes the Philippines' first double-digit increase in

the cost of gasoline on March 15. The price of Diesel rose 13.15 pesos per liter and

gasoline 7.10 pesos. During an 11-week string of hikes, the cost of the two fuels has

risen by 30.65 pesos and 20.35 pesos, respectively.

Philippine drivers' strike over soaring fuel prices, government says high costs

due to global forces, but analysts say it can do more. Clearly, a surge in fuel prices in

the Philippines has pushed many drivers and operators' union that is spearheading the

strike, said soaring fuel prices were a "national calamity".

 For millions of Filipinos, tricycles are not only a popular mode of

transportation, but also a source of income. They have little access to formal financial

services and rely on a tiny daily income, their primary source of revenue for tricycle

drivers and their families is transporting customers from their houses to markets,

schools and offices. The tricycle drivers, however, are one of the most affected

industries in our country. Furthermore, since the price of gasoline in the Philippines is

rising, and it is known that gasoline is mostly utilized as an engine fuel in tricycle

drivers' vehicle, it becomes even more difficult.

However, the effects of Inflation of Gas prices have an awful effect on the

livelihood of the drivers. Gas prices in the Philippines have further been rising since

March. Gasoline prices in Philippines averaged 0.97 USD/Liter from 1990 until 2022,

reaching an all-time high of 1.43 USD/Liter in March of 2022 and a record low of

0.34 USD/Liter in December of 1995.

The rising cost of gasoline also has an impact on the income of Tricycle

drivers, whenever fuel price increases the tricycle driver’s income decreases. In

addition to the direct impact on transportation costs, higher gas prices also cause

indirect price increases. When the price of transporting goods increases, the price of

the goods themselves increases too. This includes basic necessities like food and

medicine. The increased cost of living can be especially difficult for low-income

families. Inflation can also erode the purchasing power of wages, leading to further

economic hardship.

The study seeks to explore the experiences of tricycle drivers in Balo-I Lanao

del Norte towards the fuel price hike and also to investigate the coping strategies

employed by tricycle drivers in response to the fuel price hike and examine the
challenges they face in sustaining their livelihoods amidst rising fuel costs by

understanding the experiences and perspectives of tricycle drivers, this research aims

to provide valuable insights that can inform policy recommendations and

interventions to support this vulnerable group and mitigate the negative effects of fuel

price hike on their livelihoods.

Theoretical Framework

The Frictional theory of profits is the underpinning theory of the study

Experiences of Tricycle Drivers Towards the Fuel Price Hike in Balo-i Lanao del

Norte.

Frictional Theory of Profits

The Frictional Theory of Profits proposed by Prof. G.J. Stigler, explains that

shocks or disturbances occasionally occur in an economy because of unanticipated

changes in product demand or cost conditions which cause disequilibrium conditions.

It is these disequilibrium conditions that bring into existence positive or negative

economic profits for some firms. For instance, at the time of sharp size in petroleum

prices in the 1990 because of US-Iraq war many petroleum-refining firms enjoyed

handsome economic profits. Similarly, as a result of slowdown in world trade in the

years 1999-2001 many Indian firms doing export business suffered losses due to the

decrease in the demand for their products in the USA and other countries. In addition,

according to this theory there exists a normal rate of profit which is a return on capital

that must be paid to the owners of capital as a reward for saving and investment of

their funds rather than to consume all their income or hoard them. For example, the

fluctuations of oil price which is the resource that tricycle drivers utilize to offer

services to consumers directly affects their income as the normal rate of profit
acquired is lessened as the additional price of the capital or the fuel to be utilized is

deducted to the income generated by the said service.

This implies that the profit made by the livelihood of drivers is in a state of

disequilibrium because of the changes on the demand or more likely the increase of

cost condition of production or the capital needed to start the service, so with this it

brings the existence of possibility of a negative effect or positive effect to the industry

and on the profit acquired in it.

Conceptual Framework

Independent Variable Dependent Variable

Experiences of Tricycle Drivers in

Fuel Price Hike
Balo-i Lanao del Norte

Figure. 1 Schematic Diagram of the Conceptual Framework

The study is about the Experiences of Tricycle Drivers towards the fuel price

hike in Balo-i, Lanao Del Norte. As illustrated in the diagram above, the box placed

on the left side, is the independent variable which is the Fuel Price Hike and how it

affects the dependent variable, Experiences of the Tricycle Drivers in Balo-i, which is

placed on the right side of the diagram. The study aims to investigate the impact of

the independent variable to the dependent variable.

Statement of the Problem

The study attempted to determine the Experiences of tricycle drivers towards

Fuel Price Hike, to establish a deeper understanding on the effects of the inflation to

the drivers.

Specifically, it sought to answer the following questions:

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

a.) age; and

b.) daily income:

c.) rent or owned:

2. What are the experiences of tricycle drivers in Balo-I Lanao del Norte?

3. What recommendations could be drawn from the findings of this study?

Significance of the Study

"Experiences of Tricycle Drivers Towards the Fuel Price Hike in Balo-i Lanao

del Norte" is designed in this study for the data that will assist to the benefit of the

school, tricycle drivers, government, passengers, and for the future researchers in the

following ways;

Community. This research will serve as their guide to understand the different

situation of tricycle drivers, also for them to know the advantages of riding a tricycle.
 Drivers. For them to have wider understanding about the effect of gas price

hike to their income rather than being clueless about its effect. Most importantly, for

them to be more knowledgeable about it and make changes to adjust to its

consequences and make other ways to alleviate its effect. Also, because they are

mainly the respondents of this study.

Government. This study will help them understand the struggle of the drivers

under rising inflation and gas prices. Also, for them to establish an organization that

will help tricycle drivers. Especially the increasing energy costs, supply constraints,

and trade policies in other countries have all pushed up prices.

Passengers. This will help the passengers to understand the situation of the

tricycle drivers. Also, to be aware what problems tricycle drivers are facing and for

them to understand as they are the customers and one of the factors that affects the

income of tricycle drivers.

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 the effect of gas inflation on the tricycle drivers.

Scope and Limitations

The purpose of this study was to determine the experiences of tricycle drivers

towards Fuel Price Hike. The respondents of this study were Tricycle drivers that

operate in the area within the municipality of Balo-I and utilize fuel to power their

tricycle vehicles. The variable in this study is the above mentioned which is the

experiences of tricycle drivers towards Fuel Price Hike and the respondents' profile in
terms of age, daily income and ownership of vehicle. The study focuses solely on the

experiences of tricycle drivers towards fuel price hike in Balo-i Lanao del Norte.

Definition of Terms

The following terms were defined conceptually and operationally to simply

provide a better understanding of the said study.

Gross domestic product (GDP). It is the total monetary or market value of all

the finished goods and services produced within a country’s borders in a specific time.

(Investopedia).

In this study, this means the overall measure of the production of goods or

services within our country in a set period of time, hence, it includes the gas or fuels

that the drivers utilize for their services and also the service that they offer.

Income. The term “income” generally refers to the amount of money,

property, and other transfers of value received over a set period of time in exchange

for services or products. (Investopedia).

In this study it is the amount of money the tricycle drivers receive on a daily

basis to sustain their family's expenses in exchange for their transportation services to

the commuters in which it is affected by the increase of gas price.

Inflation. It refers to the decline of purchasing power of a given currency over

time in an economy. (Investopedia)

In this study inflation is the decline of purchasing power of the people

including both the drivers and the commuters because of the increase prices of

commodities, specifically the gas which overall increased the cost of living that made

life more difficult.

 Livelihood. The way someone earns the money people need to pay for food, a

place to live, clothing, etc.: means of support or subsistence. (Cambridge Dictionary).

In the study the livelihood of the respondents is transportation service

specifically driving or tricycle driving as it is their source of income or means of

living for sustenance of their personal and family’s needs.

Price Hike. A hike is a sudden or large increase in prices, rates, taxes, or

quantities. (Collin English Dictionary)

The price hike of gas which the tricycle drivers utilize to fuel their vehicles

affects the income of tricycle drivers is the main focus of this study.

CHAPTER II
 REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literature and related studies that

provided the background and references for this study.

Related Literature

Volatile gas prices have taken center stage in the media as the national average

for a gallon of regular gasoline has experienced wild prices swings over the past few

years. The Philippines is facing a mounting energy crisis as the Malampaya natural

gas fields, currently supplying 30% of Luzon’s energy consumption, are expected to

be depleted by 2024. The Department of Energy (DOE) said the total adjustments in

2023 stood at a net increase of P3.10 per liter for gasoline, P0.80 per liter for

kerosene; and diesel at a net decrease of P0.20 liter. (Folger, 2021)

Fuel, a combustible matter used to maintain fire, as coal, wood, oil, or

gas, in order to create heat or power. It is an energy source for engines, power plants,

or reactors; a mixture of volatile, flammable liquid hydrocarbons generated from

petroleum that is used as internal-combustion engine fuel. Because of its high energy

of combustion and ability to mix quickly with air in a carburetor, gasoline, which was

originally a by-product of the petroleum industry (kerosene being the primary

product), became the favored motor fuel. When gasoline costs rise, households are

more likely to spend a higher portion of their budgets on fuel, leaving less money for

other goods and services. The same is true for businesses that must ship goods from

one location to another or that rely heavily on fuel such as the airline industry.

(August, 2019)

Numerous obstacles to energy production exist, including an expanding

population, a new government, and some of Southeast Asia's highest electricity

prices. Due to COVID-19's effects, the energy industry experienced numerous

difficulties that required adaptations to guarantee the continuity of energy services for

customers. The Philippine government plans to use a combination of fossil fuels and

renewable energy sources to achieve energy independence for the country by 2030.

By 2040, an extra 43 GW of electrical capacity will be needed, and the nation is well

behind schedule in creating answers. (Department of Energy, 2022)

According to JPMorgan Chase & Co., the continued rise in global oil prices

caused by the Ukraine conflict may affect consumption patterns in Asian countries

such as the Philippines and, as a result, economic growth. "The recent escalation in

geopolitical tensions is expected to shock commodity prices, which have so far been

centered on energy and wheat prices." "In our baseline scenario, we expect Brent oil

prices to rise to around US$110/bbl. (barrel) in Q2 from a prior estimate of around

US$90/bbl.,". According to his estimates, a $17 per barrel or 20% increase in oil

prices to $110/bbl. could result in a 0.4 percentage point (ppt) decrease in the

Philippines' GDP growth. (Michael Varcas, 2022)

Oil and energy consumption in developing countries has changed dramatically

in recent years. The two sharp increases in oil prices in 1973-1974 and 1978-1979

resulted in significant increases in import bills for nearly all oil-importing developing

countries (OIDCs). With the 1973-1974 price rise, there is some evidence that the

external economy's short-run effects were handled without major disruption

(Dunkerley and Steinfeld, 1980). The second oil price increase, combined with global

recession and declining global trade, slowed economic growth far more than the first

price increase (Tiara, 1984).

 President Rodrigo R. Duterte approved a fuel subsidy program for public

utility and agricultural workers. Prices per liter of gasoline, diesel, and kerosene have

increased by P9.65, P11.65, and P10.30, respectively, since the beginning of the year.

When oil prices are low, there are requests to change the oil deregulation law to

incorporate the development of a strategic petroleum reserve (Michael Varcas, 2022).

The deregulation law was enacted in 1998 in an attempt to liberalize the entry

and pricing of oil products and encourage competitive pricing. However, local think

tank Ibon Foundation says it resulted in allowing monopolies to dictate fuel prices,

keeping them artificially high. “Because the oil industry in the Philippines is

deregulated and depends on the international market, the onslaught of unjust prices on

consumers, livelihood and the economy are harsher,” Ibon says. Excise taxes have

been progressively increased by the administration of President Rodrigo Duterte since

2017. Currently, they add an extra 10 pesos to a liter of gasoline, and 6 pesos to

diesel. VAT adds another 12% to the total cost.

Republic Act 8479, “Downstream. Oil Industry Deregulation Act of 1998”,

was enacted in order to liberalize and regulate the downstream oil industry in order to

ensure a truly competitive market under a regime of fair prices, adequate and

continuous supply of environmentally clean and high-quality petroleum products.

Inversely, when gas prices fall, it is cheaper to fill up the tank for both households and

businesses, and really eases costs on transportation-focused industries like airlines and

trucking—but it also puts a damper on the domestic oil industry. In general, higher oil

prices are a drag on the economy. When gasoline prices increase, a larger share of

households' budgets is likely to be spent on it, which leaves less to spend on other

goods and services (Go, 2019).

 Though economists and analysts may argue about the extent to which gas

prices have an effect on the economy, there is, at the least, a correlation between

consumer confidence, spending habits, and gas prices. An August 2020 Gallup poll in

the United States, for example, showed that individuals' views of the economy appear

to be inversely correlated to the price of gasoline. The poll showed that increases in

state gas prices made respondents feel more pessimistic about the economy over the

time period in question.

Related Studies

The Philippines, as one of the emerging economies, is a rapidly growing

ASEAN member. As a result, the country's growth is likely to influence the dynamics

of oil prices and the stock market. To investigate the relationship in the Philippine

context, the dynamics between these variables are analyzed using an unrestricted

VAR (Maghyereh, 2004). According to the findings of this study, there is no

significant relationship between oil prices and PSEi share prices, and they do not

Granger-cause each other. The impulse response functions also revealed that a shock

in real oil prices causes a very minor response on the IAPSEi, but it is not persistent,

and the effects eventually fade away. Similarly, shocks to the PSEi share price

produce a minor response on the ROPP, which is also transient and quickly falls to

zero (PSE Edge, 2014).

In the study of Sheevun (2015) entitled “Oil Prices and Stock Market: A

Philippine Perspective” claims that, Oil prices and stock markets are important

indicators of a country's economic health. Thus, using monthly data from January

1996 to December 2014, this study investigates the dynamic relationship between the

inflation adjusted Philippine Stock Exchange index (PSEi) prices and real oil prices in
Philippine pesos using the Vector Autoregression (VAR) Model. The Granger

Causality Test, Impulse Response Functions (IRFs), and Forecast Error Variance

Decomposition (FEVD) were also used to aid in the analysis of the results

(Maghyereh, 2004). This paper advises investors that real oil prices do not

significantly Granger-cause the movement of the PSEi's monthly prices. It is

suggested that future research investigate the dynamic relationship between oil prices,

industrial production, and share prices of sector indices in the Philippines that are

highly oil-dependent, taking into account oil demand and supply shocks (Guliman,

2015).

It is suggested that future research be conducted on sector indices that are

heavily reliant on oil consumption or oil imports, such as the industrial, mining, and

oil sectors. Other literature focused on the relationship between oil price and stock

market returns, taking into account the effects of oil demand or supply shocks, which

the author leaves as an avenue for future research. In addition, it is suggested that

future research look into the relationship between oil prices and industrial production

to see if the findings of other studies hold true in the Philippine context (Aloui et al.,

2012).

Arlan Brucal (2017), a research officer at Grantham Research Institute for

Climate Change and the Environment, instigated a study titled, "Can Cheap Oil Hurt

Net Importers? This paper examines the effects of oil price fluctuations on the

Philippines, a developing country with a net oil import economy. Subsequent to

Kilian's (2008) structural decomposition of real oil price change, he found evidence

that the 2008–2009 and 2014–2015 oil price drops may have reduced Philippine

output growth, possibly due to the economy's reliance on remittances from abroad and

the export market.

 Oil price declines, conventional wisdom holds, are generally beneficial to oil

importers. Previous research, particularly on advanced oil-importing economies,

provides empirical evidence for why rising oil prices are traditionally viewed as a

boon for exporters and a curse for importers (Hamilton, 1983). Surprisingly, there is

little literature on the oil price–macroeconomic relationship in developing countries.

Furthermore, only a few examined net oil-importing countries. They used the

Philippine economy as a test case in this paper to empirically assess how oil price

shocks can affect an oil-importing developing economy and to identify other potential

mechanisms by which global crude oil price changes can benefit or harm an economy

(Bulloford and Sterne 2015).

 Chapter III

RESEARCH METHODOLOGY

This chapter discussed the methods and procedures that the researchers used

in conducting this study. This includes the Research Design, Locale of the Study,

Respondents of the Study, Instrumentation, Procedures, and Statistical Tools Used.

This study utilized a quantitative approach.

Research Design

This study used a descriptive research design covering a description of the

experiences of tricycle drivers towards the gas price hike in Balo-I Lanao del Norte;

wherein it seeks to describe the experiences and profile of an identified variable and

allows an in-depth investigation of complex issues within a specific context and

problems that contains a real hypothetical situation that includes the complexities of

real-life influence decision, based on a small geographical area or a very limited

number of individuals as the subjects of the study (Winston-Salem). These research

projects are designed to provide systematic information about a phenomenon.

Specifically, this design was used to describe the relationship between the two

variables; towards the Fuel Price Hike which is the independent variable, and

Experiences of tricycle drivers in Balo-i Lanao del Norte which is the dependent

variable.
Locale of the study

This research was conducted in Balo-i Lanao del Norte. The Municipality of

Balo-I is a 3rd class Municipality in the Province of Lanao del Norte, Philippines. The

town was created from the Municipal districts Momungan, Pantar, and Balut. It is the

mother town of Tagoloan and Pantar. According to the 2022 census, it has a

population of 58, 383 people.

Respondents of the study

A total of fifty (50) respondents from Balo-i Lanao del Norte were chosen for

the study, all of whom were picked using random sampling. Most of the tricycle

drivers in the Municipality of Balo-i Lanao del Norte, specifically the pedicabs with

routes anywhere inside Balo-i Lanao del Norte, are the study's respondents. The

researchers selected those respondents because they were appropriate and relevant to

the study.

Instrumentation

The researcher used a survey questionnaire to gather information about gas

prices as a branch of increasing fuels. The questionnaire consists of several parts, the

first part is the demographic profile of the respondents such as name, age, and daily

income. The second part contains seven survey questions about fuel purchasing and

fuel prices. The survey questionnaire is related to the study and these questions are

going to be answered consequently. The respondents asked to choose their preferred

response from the given options. The last part contains statements on how the fuel

price hike affects the income of tricycle drivers. It is composed of 13 statements. A

sample statement like “the rising price of fuel is not bearable” and “there is a

significant change to the amount of tricycle fare when there is an increase of gas
price”. In each statement was rated by 5-point Likert scale; 5- “Strongly Agree”, 4-

“Agree”, 3- “Undecided”, 2- “Disagree”, and 1- “Strongly Disagree”.

Data Gathering Procedure

During the data gathering, the approved letter was sent to Practical Research

adviser. Written informed consent forms were collected from the respondents. The

form stipulated the nature and purpose of the study, the rights of participants, and data

confidentiality. The questionnaires were handed to each respondent which are the

tricycle drivers and retrieved after shortly. 5-10 minutes were given to the respondents

to answer the questionnaire. However, since the study was conducted during the day,

which was the time for them to drive, the questionnaire was returned more quickly

than the scheduled day of submission. Students were given two hours to accomplish

and provide the information needed in the questionnaire.

Statistical Tools Used

The researcher will use the following statistical tools to analyze the gathered

information:

Frequency and Percentage Distribution – This tool is used to

analyze the respondents’ profile and to group them according to the profile

they belong to. It would be applied to the demographic profile of the

respondents age, daily income, and tricycle.

Formula: P=F/N x 100

 Mean- it is used by the researchers to represent the typical value. By

calculating the mean of the claims regarding the experiences of tricycle drivers

towards the gas price hike and then interpreting the results based on a

specified range of mean.

Standard Deviation – It tells the shape of distribution; how close the

individual data values are from the mean of value. The standard deviation is

obtained by the researcher by following some steps first they find the mean,

find the square of the distance from each data point to the mean, sum the

values, divide by the number of data points and lastly, they take the square

root. Data calculations were done with the use of Microsoft Excel.
 Chapter IV

RESULTS AND DISCUSSIONS

This chapter contains the presentation, analysis and interpretation of the data

gathered.

Table 4.1 Frequency and Percentage Distribution in Terms of Age

Age Frequency Percentage (%)

18-20 8 16%
20-25 11 22%
25 above 31 62%
Total 50 100%
Table 4.1 shows the highest frequency for the age range was those 25 years

old and above which garnered a percentage of 0.62 and was followed by the 20-25

years old with a frequency of 11 and a percentage of 0.22. Lastly, the least was raging

18-20 years old of all which had a frequency of 8 and a percentage of 0.16. This

means that most tricycle drivers range from 25 years old and above, this result

indicates that tricycle drivers are individuals in their mid-20s who are more flexible,

which affects their capacity to maintain and drive the tricycle safely. Older tricycle

drivers and people with better experience have a superior understanding of regulations

and local legislation than younger tricycle drivers as well as those with less

competence. This is confirmed by the study of De Jesus et al., (2022).

Table 4.2 Frequency and Percentage Distribution of Respondents in Terms

of Daily Income

Daily Income Frequency Percentage (%)

100-250 Pesos 11 22%
 300-480 Pesos 28 56%
500 above Pesos 11 22%
Total 50 100%
Table 4.2 shows the profile of the respondents in terms of daily income. It

shows that 28 of the respondents have a range of 300-480 pesos of daily income and

having a percentage of 0.56. Those respondents having a range of 100-250 pesos and

500 above daily incomes have both 11 frequencies and a percentage of 0.22. This

states that most tricycle drivers have a daily income of 300-480 Pesos, according to

the study of Rivera et al., (2021), tricycle drivers generally agreed that they should

prioritize their basic needs before their wants and that their children's education

should always come first when it comes to income management methods in terms of

budgeting. Tricycle drivers should regularly check their accounts to see if the profit is

still sufficient for their daily needs based on their results and recommendations.

Table 4.3 Frequency and Percentage Distribution of Respondents in Terms

of Tricycle

Tricycle Frequency Percentage (%)

Owned 37 74%
Rent 13 26%
Total 50 100%
Table 4.3 shows the demographic profile of the respondents in terms of

tricycle. Out of 50 surveys, majority of the respondents owned their tricycles, having

a frequency of 37 and a percentage of 0.74, which was much higher than the

respondents who rents the tricycle which had a frequency of only 13 out of 50

respondents and a percentage of 0.26. Balaria (2016) emphasized that the practice of

tricycle drivers renting out their vehicles is known to many as the "boundary" system.
Depending on how many hours they would spend on the streets, their current

experience is a take-home income of 300 to 400 pesos a day net of fuel use. This just

serves to demonstrate that, when factors impacting trike drivers' income are classified

according to tricycle ownership, tricycle ownership makes no appreciable effect.

Table 4.4 Frequency and Percentage Distribution of Respondents Worries

about Rising Fuel Prices

Statements Frequency Percentage (%)

Yes, very worried 43 86%
Somewhat worried 4 8%
Not worried, it is what it is 3 6%
Total 50 100%
Table 4.4 shows the respondents worries about the rising of fuel prices. It

showed that majority of the respondents are very worried about it, which garnered a

43 frequency and a percentage of 0.86. And only 4 are somewhat worried with a

percentage of 0.008. While only 3 are not worried nor bothered about the situation

which has a percentage of only 0.006. This states that many are worried about the

sudden inflation of fuel. According to the study of Tuazon (2022), when considering

the rising cost of commodities, price increases also result in higher living expenses

because it has been established that oil prices are linked to those of other market

goods. In addition to the cost of petroleum rising, prices for meals, tickets, and other

daily expenses may also rise.

Table 4.5 Frequency and Percentage Distribution of Respondents Changes

on Spent Money with High Fuel Prices

Statements Frequency Percentage (%)

 No, just must pay more 5 1%
A little bit 21 42%
Yes, I’m making changes 24 48%
Total 50 100%
Table 4.5 illustrates the respondents changes how they spend money with

higher fuel prices. It shows that 24 respondents are making changes on their money

with a percentage of 0.48. With a frequency of 21 are those respondents making just a

little bit of changes on their spent money with a percentage of 0.42. Lastly, only 5

said no and they just must pay more with a percentage of only 0.1. Majority of the

respondents says that they’re making a change on spending moneys due to high fuel

prices,

Table 4.6 Frequency and Percentage Distribution of Respondents Noticing

Higher Prices on Items other than Fuel

Statements Frequency Percentage (%)

Yes 41 82%
Here and there, but nothing 6 12%
drastic
Not at all 3 6%
Total 50 100%

Table 4.6 shows the respondents noticing higher prices on items other than

fuel. Majority said Yes, they noticed how other items also went up prices with a

frequency of 41 and a percentage of 0.82. And 6 respondents said Here and there, but

nothing drastic with a percentage of 0.12. Only 3 said Not at all, they don’t notice

other items prices are higher than fuel with a percentage of only 0.06.
 Table 4.7 Frequency and Percentage Distribution of Respondents Says on

Higher Fuel Prices Affected Daily Life

Statements Frequency Percentage (%)

No impact 7 14%
Some impact 12 24%
High Impact 31 62%
Total 50 100%

Table 4.7 shows the respondents says on how higher fuel prices affected their

daily life. In here, we can see that majority have a high impact on them with a

frequency of 31 and a percentage of 0.62. 12 respondents said just some impact with a

percentage of 0.24. And only 7 respondents have no impact to their daily life with a

percentage of 0.14.

Table 4.8 Frequency and Percentage Distribution of Respondents Driving

Less than Normal with Higher Fuel Prices

Statements Frequency Percentage (%)

Yes 26 52%
I’m cutting back a bit 17 34%
No, I’m doing the same 7 14%
amount of driving
Total 50 100%

Table 4.8 shows the respondents driving less than normal due to higher fuel

prices. Majority said Yes, they drive less than normal because of higher fuel prices

with a frequency of 26 and a percentage of 0.52. 17 respondents said they are cutting

back a bit in driving with a percentage of 0.34. Lastly, only 7 said No, they are doing

the same amount of driving having a percentage of only 0.14.

 Table 4.9 Frequency and Percentage Distribution of Respondents General

Feel on Fuel Prices

Statements Frequency Percentage (%)

Much too high 30 6%
Somewhat high 15 3%
About right 5 1%
Total 50 100%

Table 4.9 illustrates the respondents feel on fuel prices. In here, we could see

that 30 respondents feel that fuel prices are much too high with a percentage of 0.6.

Some feels that fuel prices are somewhat high with a frequency of 15 and 0.3

percentage. And only 5 felt that it is just right with a percentage of only 0.1.

Table 4.10 Frequency and Percentage Distribution of Respondents Reasons

for the High Prices of Fuel

Statements Frequency Percentage (%)

Greedy oil companies 10 2%
Too many taxes on gasoline 12 24%
Oil producing companies set 11 22%
high prices
Laws of supplies and 9 18%
demands
Filipinos use too much 3 6%
gasoline
Others 5 1%
Total 50 100%

Table 4.10 shows the respondents reasons for the cause of high prices of fuel.

With a frequency of 12, said that too many taxes on gasoline are the cause of higher
prices on fuel with a percentage of 0.24. 10 respondents said that it is because of

greedy oil companies that is why the fuel prices are high with a percentage of 0.2.

Some others said that it is because of the Laws of supplies and demands that is why it

happened with a frequency of 9 and percentage of 0.18. 5 respondents have other

reasons such as; because of the Russian and Ukraine war, because of pandemic, and

some just has no idea why fuel prices got high, having a percentage of 0.1. Lastly,

others said that it is because Filipinos use too much gasoline that is why the gas price

hiked, having a frequency of 3 and only 0.006 percentage.

Table 4.11 Mean and Standard Deviation on How the Fuel Price Hike Affects

the Income of a Tricycle Driver

Indicator Mean Standard Deviation Interpretation

The fuel price hike 4.14 0.92 Agree
caused a decrease in
my income as a
tricycle driver.
As a tricycle driver, 4.10 0.85 Agree
my life has changed
drastically because
of the fuel price hike
compared to our
lives before the
pandemic.
There is a decline in 4.08 1.02 Agree
the number of
commuters that
choose to ride
tricycles when fuel
price increases.
The rising price of 4.00 0.98 Agree
gasoline has huge
impact on my sales
every day.
There is a significant 3.98 1.03 Agree
change to the
amount of tricycle
fare when there is an
increase of gas
price.
I prefer to use 3.94 0.97 Agree
cheaper products
(such as those you
can buy at sidewalks
by litre) to save
money.
My profit cannot 3.58 1.08 Agree
support the
education of my
children as my
income decreased
due to fuel price
hike.
Most of the time, we 3.58 0.96 Agree
always reduce our
expenses to cover
day-to-day
expenses.
The rising price of 3.22 1.22 Agree
fuel is not bearable.
I’m thinking of 3.10 1.39 Agree
giving up driving a
tricycle because of
 the increasing price
of fuel.
The pricing 3.06 1.29 Agree
competition is no
longer profitable for
us tricycle drivers.
When there is a gas 3.04 1.02 Agree
price hike the
commuters pay
larger amount of
fare voluntarily
which benefits my
income.
My profit every day 2.82 1.29 Neutral
is enough on
family’s daily basis
expenses.

Scale: 1.00 - 1.79 = Strongly Disagree

1.80 - 2.89 = Disagree

2.90 - 3.00 = Neutral

3.01 - 4.19 = Agree

4.20 - 5.00 = Strongly Agree

Table 4.11 shows the mean and standard deviation obtained by the following

indicators. The indicator “The fuel price hike caused a decrease in my income as a

tricycle driver” obtained a mean rating of 4.14 and a standard deviation of 0.92

interpreted as Agree. This implies that since the fuel price hiked, the tricycle driver's

income decreased. The indicator “As a tricycle driver, my life has changed drastically

because of the fuel price hike compared to our lives before the pandemic” has a mean

rating of 4.10 and a standard deviation of 0.85 also interpreted as Agree, implies that
in comparison to their lifestyles prior to the pandemic, it demonstrates how

significantly their livelihood as a tricycle driver has altered as a result of the increase

in fuel prices.

The indicator “There is a decline in the number of commuters that choose to

ride tricycles when fuel price increases” having a mean rating of 4.08 and a standard

deviation of 1.02 interpreted as Agree. This implies that whenever fuel prices rise,

fewer commuters choose tricycles as their mode of transportation. The indicator “The

rising price of gasoline has huge impact on my sales every day” obtained a mean

rating of 4.00 and a standard deviation of 0.98 interpreted again as Agree implies that

tricycle drivers have a significant influence on their sales because of the growing cost

of gas each day. The indicator “There is a significant change to the amount of tricycle

fare when there is an increase of gas price” has a mean rating of 3.98 and a standard

deviation of 1.03 and interpreted as Agree. This implies that tricycle drivers,

whenever the price of petrol rises, the cost of tricycle fare also significantly changes.

The indicator “I prefer to use cheaper products (such as those you can buy at

sidewalks by litre) to save money” obtained a mean of 3.94 and a standard deviation

of 0.97 interpreted as Agree, this implies that some tricycle drivers also like to utilize

products that are less expensive (such those sold by the litre at sidewalks) to conserve

money, however majority of them disagreed and still likes to go to gasoline stations to

fill. The indicators “My profit cannot support the education of my children as my

income decreased due to fuel price hike” and “Most of the time, we always reduce our

expenses to cover day-to-day expenses” both have obtained a mean rating of 3.58 and

a different standard deviation, in first statement has a standard deviation of 1.08 and

in the second has a 0.96 standard deviation. Also, both interpreted as Agree. This
implies that tricycle drivers profit every day is not sufficient to cover their daily

expenses and cannot support the education of their children.

The indicator “The rising price of fuel is not bearable” has a mean rating of

3.22 and a standard deviation of 1.22 interpreted as Agree. This implies that despite

the fuel price hike, tricycle drivers still can manage with the changes of fuel price and

bear with it. The indicator “I’m thinking of giving up driving a tricycle because of the

increasing price of fuel” obtained a mean rating of 3.10 and a standard deviation of

1.39 interpreted as Agree, implies that some tricycle drivers thought of giving up

driving tricycle because of the fuel price hike. However, majority of the respondents

disagreed and still continued to driving tricycle despite the inflation of gas price.

The indicator “The pricing competition is no longer profitable for us tricycle

drivers” has mean rating of 3.06 and a standard deviation of 1.29 interpreted again as

Agree. The indicator “When there is a gas price hike the commuters pay larger

amount of fare voluntarily which benefits my income” obtained a mean rating of 3.04

and a standard deviation of 1.02 interpreted as Agree, this implies that commuters do

not pay larger amount of fare voluntarily and sometimes they pay small amount of

fare that causes no benefit on the income of tricycle drivers. And lastly, the indicator

“My profit every day is enough on family’s daily basis expenses” obtained a mean

rating of 2.82 and a standard deviation of 1.29 interpreted as Neutral. This implies

that despite the continues fuel price hike in the Philippines, the tricycle drivers had a

neutral interpretation, indicating that the daily profit they receive is sufficient to cover

their family's essential expenses.

 Chapter V

SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

This chapter presents the summary of the study and the conclusion drawn from

the findings.

Summary of Findings

The study evaluated the gas price hike that affects the income of tricycle

drivers in Balo-i, Lanao Del Norte. The study used survey questions that were
distributed in order to collect data from 50 respondents. The survey contained a

demographic profile and questions on how the gas price hike affects the livelihood of

tricycle drivers of Balo-i, Lanao Del Norte may be described in terms of making

money. Through the distributed survey questionnaire, it allowed the study to gain

background information and data of the chosen respondents as it assesses the findings

of the study.

Based on the results of the demographic profile, it showed that the majority of

respondents who participated were between the ages of 18 to 20 were single and 25

above were married. It also demonstrated that 13 out of 50 respondents rented their

tricycle and the rest owned their tricycle. In addition to the results, it showed that the

vast majority of respondents "disagree" with the given statement and claims in the

survey. The respondents disagreed with the question: “when there is a gas price hike

the commuters pay larger amount of fare voluntarily which benefits my income”. The

income or profit they receive every day is not enough for their daily life. Although

there were few respondents who "agree" with the statement. Their daily income from

200 pesos to 500 pesos cannot sustain their daily needs, especially for their children.

The statements in Table 4.11 show how the increase in gasoline prices impacts

the pay of tricycle drivers. With a mean score of 4.14 and a standard deviation of 0.92

for statement number one, the respondents disagreed, indicating that the increase in

fuel prices reduced their incomes as tricycle drivers. The respondents disagreed with

statement number two with a mean of 4.10 and a standard deviation of 0.85. In

comparison to their lifestyles prior to the pandemic, it demonstrates how significantly

their livelihood as a tricycle driver has altered as a result of the increase in fuel prices.

The majority of respondents disagreed with statements three through twelve, with

varying means and standard deviations.

Conclusion

With the results of the study, the following conclusions were made Majority of

the respondents' age range between the age of 18 to 25 above, and all of them were

male. The findings demonstrated that 13 out of 50 tricycle drivers rented their tricycle

and the rest were their own tricycle. Moreover, the respondents have a 300 to 480

pesos income range on a daily basis. Furthermore, the majority of the respondents

operate in the area of public market in Balo-I Lanao del Norte and are classified as

regular tricycle drivers. This can be concluded by the result of our findings -that the

dependent variable, gas price hike moderately affects the income of tricycle drivers in

the Balo-I Lanao del Norte.

Recommendations

Below are the recommendations from the researchers based on each of the

study findings after a comprehensive analysis.

To the Community

The researchers recommended this:

The community is advocated to be more knowledgeable about the economic

situations especially on the utilities that are being utilized greatly inside the

community such as the gas price and its fluctuations for them to adapt on the

changing economy in our society.

For the Drivers

The researchers recommended this:

They should strive to find alternative fuel that is much cheaper as compared to

other stations or stores to minimize the effect of gas price hike to their daily income

and help them alleviate the effect of gas price hike. The drivers are also recommended

to be more frugal to the use of fuel and minimize their use of it especially on

unnecessary drives to save on the gas fuel and also to adhere to the established

average transportation fare by the local government unit

To the Government

The researchers recommended this:

The government should find solutions that can help both the drivers and the

commuters to adapt to the changing economic situation of the country, especially

globally, and mitigate its negative effects on the citizens' way of living.

For the Passengers

The researchers recommended this:

It is suggested to pay the established minimum transportation fare to assure

fairness between the commuters and the drivers and guarantee that they are not taken

advantage of and also for drivers to profit on their offered service.

For the Future Researchers

The researchers recommended this:

They should study about the effect of gas price to the variety of drivers such as

jeepney drivers or private car owners and also to focus on how the fluctuations of gas
price, either in increasing or in decreasing order to their income or livelihood in

general.

References:

Aloui, C., Nguyen, D. K., & Njeh, H. (2012). Assessing the impacts of oil

price fluctuations on stock returns in emerging markets. Economic Modelling, 29,

2686-2695. http://dx.doi.org/10.1016/j.econmod.2012.08.010

Apergis, N., & Miller, S. (2009). Do Structural Oil-market Shocks Affect

Stock Prices? Energy Economics, 31(4), 569-575.

http://dx.doi.org/10.1016/j.eneco.2009.03.001
 Basher, S., Haug, A. & Sadorksy, P. (2012). Oil prices, exchange rates and

emerging stock markets. Energy Economics, 34, 227-240.

http://dx.doi.org/10.1016/j.eneco.2011.10.005

Basnet, H. C., Vatsa, P., & Sharma, S. (2014). Common Trends and Common

Cycles in Oil Price and Real Exchange Rate. Global Economy Journal, 14(2), 249-

263. http://dx.doi.org/10.1515/gej-2013-0042

Chen, J. (n.d.). Price Inflation Definition. Investopedia.

https://www.investopedia.com/terms/p/price_inflation.asp

Domingo, G., & Ty, T. (n.d.). What fuel prices can tell us: DOE Price

Monitoring Data in Competition Enforcement and Consumer Welfare.

https://www.phcc.gov.ph/wp-content/uploads/2021/04/PCC-Discussion-Paper-2021-

01-What-fuel-prices-can-tell-us-DOE-Price-Monitoring-Data-in-Competition-

Enforcement-and-Consumer-Welfare.pdf

Dutta, N. (2015, April 15). Top 5 Theories of Profit – Explained! Economics

Discussion. https://www.economicsdiscussion.net/profit/top-5-theories-of-profit-

explained/6101

Fernando, J. (2022, September 29). Gross Domestic Product - GDP.

Investopedia. https://www.investopedia.com/terms/g/gdp.asp

Fernando, J. (2022, September 13). Inflation. Investopedia.

https://www.investopedia.com/terms/i/inflation.asp

Folger, J. (2021, September 1). How Gas Prices Affect The Economy.

Investopedia. https://www.investopedia.com/financial-edge/0511/how-gas-prices-

affect-the-economy.aspx
 Galvez, D. (2023, January 23). Nearly Php 3 per liter fuel price hike set on

Jan. 24. INQUIRER.net. https://business.inquirer.net/383516/nearly-3-peso-oil-price-

hike-to-be-implemented-starting-jan-24

How to budget for rising fuel prices | Metrobank. (n.d.).

Www.metrobank.com.ph. https://www.metrobank.com.ph/articles/learn/how-to-

budget-for-rising-gas-prices

Jimenez-Rodriguez, R. (2008). The impact of oil price shocks: Evidence from

the industries of six OECD countries. Energy Economics 30(6):3095–3108. Jimenez-

Rodriguez, R. and M. Sanchez. 2005. Oil price shocks and real GDP growth:

Empirical evidence for some OECD countries. Applied Economics 37(2):201–228.

Kagan, J. (2019). What Everyone Should Know About Income. Investopedia.

https://www.investopedia.com/terms/i/income.asp

Kpodar, K. R., & Liu, B. (2021). The Distributional Implications of the Impact

of Fuel Price Increases on Inflation. IMF Working Papers, 2021(271).

https://doi.org/10.5089/9781616356156.001.A001

Livelihood. (n.d.). Dictionary.cambridge.org.

https://dictionary.cambridge.org/us/dictionary/english/livelihood

Practical Research (Chapter 1) Corrected | PDF | Gasoline | Inflation. (n.d.).

Scribd. https://www.scribd.com/document/562892134/Practical-Research-Chapter-1-

Corrected

Rising Gas Prices in the Philippines | Kid Reporters’ Notebook | Scholastic

Inc.(n.d.). Kpcnotebook.scholastic.com.

https://kpcnotebook.scholastic.com/post/rising-gas-prices-philippines
 The Editors of Encyclopaedia Britannica. (2017). Gasoline | fuel. In

Encyclopædia Britannica. https://www.britannica.com/technology/gasoline-fuel

Writer, S. (2022, March 25). Philippine jeepney drivers strike over soaring

fuel prices. Nikkei Asia; Nikkei Asia. https://asia.nikkei.com/Economy/Philippine-

jeepney-drivers-strike-over-soaring-fuel-prices