This paper proposes a hybrid approach for optimizing the location and parameters of an Interline Power Flow Controller (IPFC) to alleviate congestion in a competitive electricity market. Utilizing Gravitational Search Algorithm (GSA) and Particle Swarm Optimization (PSO), it aims to enhance the economic efficiency of market operations by managing congestion and improving power flow. The findings, validated through case studies on an IEEE 30-bus system, indicate significant benefits in operational costs and market economics.