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Oman’s ruler, Sultan Qaboos bin Said, has put on hold the government’s decision to scrap price controls after the new rules caused an unusual public backlash on social media and triggered an intervention by the Majlis Ash’shura, the elected lower chamber of the Council of Oman, the country’s bicameral parliament.

Under rules dating back to 2011 in the wake of the street protests when inflation was a major concern, retailers and traders needed to seek the approval of the Public Authority for Consumer Protection (PACP) to raise the prices of all goods. The authorities have acknowledged for some time that these controls are not compatible with a free-market economy and sought to deregulate prices on all but twenty three staple items such as rice, cooking oil, sugar, powdered milk and fresh and other dairy products.

The lifting of price controls announced by PACP in mid-June had been sanctioned by the Council of Ministers during their deliberations on a new consumer protection law back in March. However, in late June the Majlis Ash’shura unanimously rejected the controversial decision and successfully appealed to Sultan Qaboos to postpone its adoption until new competition and anti-monopoly legislation is in place to protect consumers. The Sultan’s decision puts pressure on the Council of Oman to speed up its deliberations on the draft laws in question, the revised Commercial Agencies Law and the new Competition and Anti-Monopoly Law. The third law on consumer protection was forwarded to the sultan in late May following an unusual joint session of the Majlis Ash’shura and the appointed upper house, Majlis al‑Dawla (State Council) aimed at resolving the councils’ differences on the draft law. The session discussed eleven articles, agreeing on seven and voting on a further four.

These episodes illustrate the challenges facing Oman in balancing the competing demands of stakeholders when introducing key market reforms. They also mark the growing confidence and role of the Majlis Ash’shura in the legislative process as well as the success of Oman’s constitutional framework for achieving consensus in the event of disagreement within the Council of Oman.