SINGAPORE—A Cabinet official announced that Petron Corp., one of the three big oil companies in the Philippines, has agreed to open its records to the Commission on Audit, a crucial move that could set the stage for a wider government scrutiny of the oil industry.

Trade Secretary Peter Favila said Petron has offered to waive the company’s privilege against being subjected to COA audit.

Favila said Petron chairman Ramon Ang had told him in a meeting that it was illegal for the government to audit a private company like Petron. But Favila said Ang eventually acceded when he told him that such an audit would be possible if the company would “waive” the privilege.

“They volunteered,” he told reporters covering President Macapagal-Arroyo at the Asia-Pacific Economic Cooperation (Apec) forum here.

Petron, along with Pilipinas Shell Petroleum Corp. and Chevron Philippines, is questioning a Manila Regional Trial Court decision directing the COA, Bureau of Internal Revenue and Bureau of Customs to form a panel to examine the books of the oil companies.

Favila surmised that with Petron’s waiver, the legal battle would be rendered “moot and academic.”

The official sought to douse fears that the oil companies would jack up their prices by bulk as soon as Executive Order No. 839 is lifted on Monday.

“As the oil companies said, this is not just a question of trying to recoup losses, but rather minimizing the losses,” he said. “There’s burden-sharing.”