its fair market value, and if the owner refuses to part with it except for more than its going price, he is still entitled to no more than that price.1
From this it becomes clear that price-fixing (tasʿīr) is of two kinds. One kind is unjust and therefore impermissible; the other is just and therefore allowable, indeed obligatory. Whenever it wrongs people—by coercing them without right to sell at a price they do not accept, or by preventing them from something Allah has permitted—then it is forbidden. But when it establishes equity among them, such as compelling them to engage in a transaction at the going rate or preventing them from taking more than a fair equivalent, then it is permissible and even mandatory.
The first category is illustrated by the report transmitted from Anas: “Prices rose in the time of the Messenger of Allah ﷺ, so the people said, ‘O Messenger of Allah, will you not fix the prices for us?’ He replied, ‘Allah is the Withholder, the Expander, the Provider, the One who fixes prices. I hope to meet Allah while no one claims that I have wronged him in blood or wealth.’” Abū Dāwūd and al-Tirmidhī narrated it, and al-Tirmidhī declared it sound.2
Thus, when people are selling their goods in the usual manner without oppressing anyone, and prices rise—whether because the commodity is scarce or because the population has increased—this is a matter left to Allah. Forcing people to sell at a specific figure under those circumstances is coercion without right.
The second category applies when the owners of goods refuse to sell them, despite people’s pressing need, unless they receive more than the known market price. In that case they must be compelled to sell at the going rate, for price-fixing here means nothing other than obliging them to accept the fair market value, and they must comply with what Allah has imposed upon them.
An even clearer case is when the community has restricted the sale of food or other goods to a select group of known traders, so that those commodities may only be bought from them. If these traders then conduct the sales themselves, while anyone else who tries to sell is barred—whether unjustly through a fee levied on the seller, or even without such injustice because of the corruption that would ensue—then price-fixing becomes imperative. They must be required not to sell except at the market rate and not to buy people’s property except at the market rate, a point upon which the scholars are unanimous. For when others have been prevented from selling or buying that type of commodity, if the privileged traders were permitted to sell or buy at any price they chose, the outcome would be