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Brazil's Petrobras adopts new pricing policy for diesel market

SAO PAULO, Dec 28 (Reuters) - Brazil's Petroleo Brasileiro SA has approved measures that will give the state-run oil company greater flexibility in setting its diesel prices, the firm said in a filing on Friday.

While Petrobras, as the firm is known, did not explicitly call the plan a hedging programme, it said the move was similar to a measure taken in September, when the company introduced a hedging programme for gasoline.

Under the new measures, Petrobras said it will be able to keep diesel prices stable for up to seven-day periods, while varying the frequency of price adjustments during times of high volatility.

(Reporting by Gram Slattery; Editing by Susan Fenton)