THE IMPACT OF FUEL PRICE INCREASES ON INFLATION

A Term Paper
Presented to
MISS CELINE CHRISTY U. CABILAO
Accounting, Business and Management
Senior High School Department
Mindanao State University Buug-Campus
Datu Panas, Buug, Zamboanga Sibugay

In Partial Fulfillment
Of the Requirements for the Course
Spec. 2 (Reading and Writing Skills)
Second Semester, 2021-2022

By

SYRIJEN L. DIAGOSO

June 2022
 Title: The Impact of Fuel Price Increases on Inflation

Thesis Statement: Fuel is what makes a vehicle move and what we use to go around in our daily lives; if
oil prices rise, it may become more difficult to pay for refuel.

Introduction

Here in our world, inflation happens a lot. This paper aims to uncover the consequences when
fuel price rises on inflation and how the people will react to it. If there is inflation, all the prices of the
products such as fuel price will be affected and will increase.

Objectives

I. Differences in economic status

A. Underprivileged
B. Privileged

II. Affect of consumers and business

A. Product prices hike
B. Transportation

III. Workers
A. Blue collar jobs
1. Drivers

Conclusion

There are several impacts in fuel price rising. The people who are most affected are the lower class such
as drivers, consumers, workers and etc. Next to them are the companies that are affiliated with fuel
business and factories that uses fuel for their machines. The annual rate of inflation worldwide, as
measured by the consumer price index, accelerated to 9.2 percent in march 2022, up from 7.5 percent in
February 2022, 6.8 percent in January 2022 and 6.4 percent in December 2021. Moreover, the fuel price
hike has also good effects, for instance, lessen of pollution and road accidents.
 Title: The Impact of Fuel Price Increases on Inflation

Thesis Statement: Fuel is what makes a vehicle move and what we use to go around in our daily lives; if
oil prices rise, it may become more difficult to pay for refuel.

Introduction

Here in our world, inflation happens a lot. This paper aims to uncover the consequences when
fuel price rises on inflation and how the people will react to it. If there is inflation, all the prices of the
products such as fuel price will be affected and will increase.

I. Every people is either privileged or not and may face hardships or not during the inflation.
A. Unprivileged people, or the poor, experience the greatest increase in their cost of living
B. Privileged people doesn’t face much difficulties since they can sustain their needs and have
stable jobs and income

II. Consumers are grappling with record high gas prices, but the surge is also hurting business.
A. Many consumers reported that their consumptions of major foods items such as fish have
decreased due to inflation. They claimed that they had to cut their expenditure on non-food items. About
79 percent consumers strongly reported that syndicate of the business (hoarding) is one of the main
causes of price hike while 60 percent and 63.53 percent strongly felt that price hike is a result of the
failure of govt. control and natural calamities, respectively.
B. The rising of fuel price affects the whole industry that it costs more for the carrier to transport
goods, the shipper is charged more to transport those goods to make up the increased costs.

III. Due to extraordinary inflation, the series of wage increase orders issued by the wage boards failed to
restore the purchasing power of wages and they didn’t uplift workers’ purchasing power above poverty
threshold wage level.
A. Blue workers job
1. Drivers such as jeepney drivers are struggling due to rising fuel prices, and their primary
source of income is never enough because it is spent on fuel. They are also having a hard time earning
unlike in the past.

Conclusion

There are several impacts in fuel price rising. The people who are most affected are the lower class such
as drivers, consumers, workers and etc. Next to them are the companies that are affiliated with fuel
business and factories that uses fuel for their machines. The annual rate of inflation worldwide, as
measured by the consumer price index, accelerated to 9.2 percent in March 2022, up from 7.5 percent in
February 2022, 6.8 percent in January 2022 and 6.4 percent in December 2021. Moreover, the fuel price
hike has also good effects, for instance, lessen of pollution and road accidents.
BIBLIOGRAPHY

A. PUBLIC DOCUMENTS

1. The Impact of Higher Oil Prices on Low Income Countries and on the Poor
Published by World Bank. 2005-03. S. pdf.
2. Inflation more than doubled between March 2021 and March 2022
Published by International Labour Organization. 2022-05. S. org.
B. COMPUTER MATERIALS/ON-LINE RESOURCES
Articles
“4 Implications of Rising Fuel Costs to Freight Transportation.” www.ddcfpo.com
“Rising fuel costs are a massive problem for business and consumers.” www.cnbc.com
“What are the characteristics and disadvantages of the rising of petrol prices?” www.qoura.com
C. NEWSPAPERS
Lema, Karen “Drivers of Philippine Icons Ravaged by Fuel Prices.” Reuters Lifestyle 15 July 2008
Ordoñez, John Victor D. “Leading union says wage hikes already wiped out by surging fuel prices.”
Business World 6 June 2022
D. DICTIONARY ENTRY
“Blue collar worker.” resources.workable.com