Ibn Majah

1؎: In the blessed era of the Prophet sallallahu alayhi wa sallam, the prices of food grains had increased, perhaps due to famine and lack of rainfall, or because the route between Madinah and Shaam, from where grain would come to Madinah Munawwarah, had deteriorated. People requested the Messenger of Allah sallallahu alayhi wa sallam to impose controls on prices and profits, but the Prophet sallallahu alayhi wa sallam referred this matter to Allah Ta’ala, stating that He alone is the Provider (Razzaq), and it is in His hand to decrease or increase sustenance. The Messenger of Allah sallallahu alayhi wa sallam did not impose price controls out of concern that people might be subjected to oppression or injustice as a result. However, the ruler of the time may, in service to the people, take steps to control prices in a just and equitable manner. In view of public interest, the scholars of Islam have permitted this. Imam Ibn al-Qayyim rahimahullah states that in price control, some matters fall under the category of the forbidden (haram), while others are based on justice and are permissible. If price controls result in people being oppressed or unjustly forced into sales that are disliked by them, or if they are prevented from things that are lawful (mubah) for them, then such control is haram. But control that guarantees justice and fairness among people—such as compelling them to accept only the price to which they are truly entitled, and preventing them from taking more than the actual price, which is haram for them to take—then such control is not only permissible but obligatory (wajib). In summary, if public interests cannot be fulfilled without price controls, then prices should be set in a just manner; but if there is no need for it and matters are proceeding smoothly without it, then price controls should not be imposed.

Allamah Muhammad bin Ibrahim Aal al-Sheikh, Grand Mufti of Saudi Arabia, states that what has become clear to us and what our hearts are content with is exactly what Ibn al-Qayyim rahimahullah has mentioned: that some aspects of price fixing are oppression, while others are in complete accordance with justice and fairness, and the latter is permissible. If price controls result in people being oppressed or unjustly forced to accept prices to which they are not agreeable, or if they are thereby prevented from things Allah has made lawful, then such action is haram. But if price controls fulfill the requirement of justice among people, such as compelling them to accept the true price and rightful compensation, or preventing them from taking more than the actual price, which is haram for them, then this is not only permissible but obligatory. Thus, price control is permissible with two conditions: the first is that it applies to items needed by all people; the second is that the cause of high prices is either a shortage of goods in the market or an increase in demand. In cases where both these conditions are found, setting prices is a matter of justice and public interest, such as controlling the prices of meat, bread, medicines, etc.

The Majma‘ al-Fiqh al-Islami in Makkah Mukarramah, in a resolution regarding the control of traders’ profits (in 1409 Hijri), decided that the ruler should only intervene in the market and the pricing of goods when there is clear disruption due to artificial causes. In such a case, the ruler should adopt possible just means to intervene in the matter and eliminate the causes of corruption, inflation, and excessive fraud. (See: Tawdeeh al-Ahkam min Bulugh al-Maram, authored by Abdullah bin Abdulrahman al-Bassam, 4/329)