Gandhi said the UPA government was forced to hike fuel prices due to surging global oil rates but it was asking state governments to offer some relief by giving subsidies to cushion the impact.
"We had to increase the prices of petrol due to surging global oil prices. There was no alternative...During the BJP's time it was $40 a barrel (of oil) but now it is $140," she said.
"The biggest challenge before the country today is inflation and escalating prices that are a fallout of the steep increase in crude oil prices. The government is facing tremendous pressure in its efforts to shield people from the real impact of the global crude oil price rise," Gandhi said addressing a mammoth Kisan Rally here.
Gandhi however sought to defend the oil price hike saying the petrol and diesel prices in the country were still much cheaper than that in our neighbouring countries and other parts of the world.
Gandhi also batted for nuclear energy underlining its importance at this juncture when surging oil prices posed serious problems for the economy.
"Nuclear energy has gained much importance in view of the steep rise in global oil prices," she said.
Touching upon local issues, Gandhi said the UPA government was committed to implementing all the clauses of the Assam Accord. The Accord was signed in 1985 by late prime minister Rajiv Gandhi and All Assam Students Union(AASU) which has accused the Centre of failing to implement all clauses of the pact.
