Labor risks picking a fight with the gas industry with a plan to cap prices at between $11 and $13 a gigajoule for commercial and industrial customers in a move that could threaten additional supply and open up a battle between Queensland and southern states.

But Premier Annastacia Palaszczuk put federal Labor on notice that she will oppose any attempt to force a similar price cap on coal used by state-owned energy companies, declaring “hands off our generators”.