Close on the heels of steep increase in diesel price and cap on supply of subsidised LPG, President Pranab Mukherjee on Monday said greater alignment of domestic rates with global prices was in the interest of both the consumers and the investors.

Inaugurating the 10th edition of Petrotech Oil and Gas Conference in New Delhi, Mr Mukherjee said that government is committed to adopt a time-bound programme to achieve this.

In an apparent reference to India's dependence on world markets to meet its energy needs, the President said that just like financial markets, the world energy markets are inherently global and interdependent, and no single country can isolate itself from the market.

AIR correspondent reports that the government had in June 2010 decontrolled petrol price and agreed to free diesel rates in a calibrated manner.

A steep 5.62 rupees per litre hike notwithstanding, diesel continues to be sold at a discount of 11.05 rupees per litre to its actual cost as international rates continue to rule high.