Joseph Kennedy, head of the Boston-based nonprofit which distributes the fuel, said Venezuelan President Hugo Chavez intervened directly.
Citgo Petroleum CEO Alejandro Granado made the announcement, saying Citgo had found a way to continue paying for oil shipments.
The announcement comes two days after Kennedy said Citgo was suspending fuel assistance, citing falling oil prices and the world economic crisis.
Chavez provides fuel for 200,000 households in 23 states under the program that has come under fire in the U.S.
Critics say the program is a ploy by Chavez to undermine the Bush administration.