A parliamentary panel is pushing the Indian government to put a cap on the "artificially created exorbitant airfares" charged by Indian airlines operating between India and the Gulf, said a report.

The move comes amid growing concerns that airlines are hiking airfares, especially during the festive season, said a report in Times of Oman.

"We are a developing country and many of the pricing mechanisms applicable to developed countries may not suit the Indian people and Indian conditions. The aviation ministry should consider fixing an upper limit for every sector, especially in the economy class of air fares,” the panel has said.

The panel noted that even after a 50 per cent reduction in the Aviation Turbine Fuel (ATF) taxes over a period of time, the airlines have not passed on the reduction to consumers.

It recommended that the ministry take effective steps to ensure that the airlines pass on the benefit to travellers by reducing the air fares and inform the panel about the specific steps taken in this regard and the outcome thereof,” the proposal said.

The panel further noted that fares from Kerala to the Gulf are quite exorbitant compared with foreign carriers.