BRASILIA, July 23 (Reuters) - The Brazilian government decided to extend a subsidy for gasoline of 0.44 real per liter, the Finance Ministry said in a statement on Thursday, amid rising oil prices driven by the escalating conflict in the Middle East.
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The subsidy for gasoline, which was set to expire on July 25, will be extended for 30 days starting on July 26, the ministry said.
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In an interview with BandNews, Finance Minister Dario Durigan said the move will be funded by an increase in government revenue from higher oil prices, such as through royalties.
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Reuters reported last week, citing a source, that the government planned to extend gasoline and diesel subsidies.
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The government late in June decided to eliminate part of the diesel subsidy when oil prices retreated as Middle East tensions eased, but the relief proved temporary.
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A subsidy of 1.12 reais per liter of diesel remains in effect.
Reporting by Bernardo Caram in Brasilia; Writing by Andre Romani; Editing by Muralikumar Anantharaman and Kim Coghill
Source: Reuters