New Delhi, Aug. 11 -- Responding to queries regarding a cap on airfare for passengers in India, the Centre told Parliament that the government does not regulate prices, and dynamic prices are subject to forces of supply and demand.

The question sought response on regulatory mechanisms available to prevent financial exploitation of passengers by domestic airlines through steep fare hike surges from Rs.5,000 up to Rs.50,000 during peak travel dates or festive season.

In a written response to Lok Sabha, Murlidhar Mohol, the Minister of State (MoS) for the Ministry of Civil Aviation (MoCA), defended that the Centre does not regulate airfares since the Air Corporation Act was repealed in March 1994. "Airlines have the autonomy to establish a...